Limelight Stock Story

LLNW -  USA Stock  

USD 2.61  0.14  5.09%

It appears Limelight Networks will continue to recover much faster as its share price surged up 13.04% today. Limelight Networks current daily volatility is 3.12 percent, with a beta of 0.96 and an alpha of 0.12 over DOW. While many traders are getting carried away by overanalyzing business services, it is reasonable to focus on Limelight Networks. We will evaluate if Limelight Networks shares are reasonably priced going into November.
Published over a month ago
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Should you pick up Limelight Networks after the latest volatility climb?
Limelight Networks currently holds roughly 119.54 M in cash with 11.86 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.94.
We provide investment recommendation to complement the last-minute expert consensus on Limelight Networks. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
Investing in Limelight Networks, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Limelight Networks along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Limelight Networks' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Limelight Networks in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Limelight Networks. Your research has to be compared to or analyzed against Limelight Networks' peers to derive any actionable benefits. When done correctly, Limelight Networks' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Limelight Networks.

How important is Limelight Networks's Liquidity

Limelight Networks financial leverage refers to using borrowed capital as a funding source to finance Limelight Networks ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Limelight Networks 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 Limelight Networks's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Limelight Networks, but it might be worth checking our own buy vs. sell analysis

Limelight Networks Correlation with Peers

Investors in Limelight can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Limelight Networks. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Limelight Networks and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Limelight is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Limelight for more details

Breaking it down a bit more

We consider Limelight Networks relatively risky. Limelight Networks has Sharpe Ratio of 0.0484, which conveys that the firm had 0.0484% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Limelight Networks, which you can use to evaluate the future volatility of the firm. Please verify Limelight Networks Mean Deviation of 2.22, risk adjusted performance of 0.0414, and Downside Deviation of 2.57 to check out if the risk estimate we provide is consistent with the expected return of 0.15%.

Will Limelight Networks latest climb continue?

Limelight Networks latest semi deviation rises over 2.46. Limelight Networks currently demonstrates below-average downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.12. However, we advise investors to further question Limelight Networks expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Limelight Networks' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Limelight Networks' 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.

Our Conclusion on Limelight Networks

While other entities under the software—infrastructure industry are still a bit expensive, Limelight Networks may offer a potential longer-term growth to sophisticated investors. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Limelight as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Limelight Networks.

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 Gabriel Shpitalnik do not own shares of Limelight Networks. Please refer to our Terms of Use for any information regarding our disclosure principles.

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