Is it a good time to hedge Legend BiotechCorp (USA Stocks:LEGN) volatility

LEGN Stock  USD 52.71  1.13  2.10%   
25% of stocks are less volatile than Legend, and 94% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. As many investors are getting excited about healthcare space, it is fair to outline Legend BiotechCorp. We will go over odds for Legend BiotechCorp to generate above-average margins next month. Legend BiotechCorp's low volatility may still impact the value of the stock as we estimate it as currently undervalued. The real value, based on our analysis, is getting close to 58.62 per share.
Published over a month ago
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This firm conducts business under Healthcare sector and is part of Biotechnology industry.
Volatility is a rate at which the price of Legend BiotechCorp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Legend BiotechCorp may increase or decrease. In other words, similar to Legend's beta indicator, it measures the risk of Legend BiotechCorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Legend BiotechCorp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Legend BiotechCorp's Liquidity

Legend BiotechCorp financial leverage refers to using borrowed capital as a funding source to finance Legend BiotechCorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Legend BiotechCorp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Legend BiotechCorp's total debt and its cash.

How does Legend utilize its cash?

To perform a cash flow analysis of Legend BiotechCorp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Legend BiotechCorp is receiving and how much cash it distributes out in a given period. The Legend BiotechCorp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

What is driving Legend BiotechCorp Investor Appetite?

The company reported the previous year's revenue of 89.79 M. Net Loss for the year was (386.21 M) with profit before overhead, payroll, taxes, and interest of 91.56 M.

Will Legend institutional investors exit after the slide?

Legend BiotechCorp latest variance surges over 8.32. Legend BiotechCorp has relatively low volatility with skewness of 2.02 and kurtosis of 7.53. However, we advise all investors to independently investigate Legend BiotechCorp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Legend BiotechCorp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Legend BiotechCorp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Whereas other companies under the biotechnology industry are still a bit expensive, Legend BiotechCorp may offer a potential longer-term growth to institutional investors. To summarize, as of the 13th of December 2022, we see that Legend BiotechCorp follows the market closely. The company is undervalued with low chance of financial distress within the next 24 months. Our final 90 days buy-hold-sell advice on the company is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Legend BiotechCorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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