Lmp Automotive Stock Story


USD 6.73  0.31  4.83%   

Given the investment horizon of 90 days Lmp Automotive is expected to generate 4.32 times more return on investment than the market. However, the company is 4.32 times more volatile than its market benchmark. It trades about 0.04 of its potential returns per unit of risk. The DOW is currently generating roughly -0.04 per unit of risk. Although many risk-takers are getting more into consumer cyclical space, some of us are not very happy with Lmp Automotive's current volatility. We will cover the possibilities of Lmp Automotive's current volatility to continue through July.
Published over a month ago
View all stories for Lmp Automotive | View All Stories

Lmp Automotive Sentiment by News Outlets

benzinga news
Macroaxis News: globenewswire.com

Lmp Automotive Holdings Historical Investor Sentiment

Investor biases related to Lmp Automotive's public news can be used to forecast risks associated with investment in Lmp Automotive. The trend in average sentiment can be used to explain how an investor holding Lmp Automotive can time the market purely based on public headlines and social activities around Lmp Automotive Holdings. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Lmp Automotive's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Lmp Automotive's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Lmp Automotive's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Lmp Automotive.

Lmp Automotive Holdings Twitter Pulse

Investors have realized that leveraging social media to get the fastest information affecting stock prices isn't a theory anymore, it is a reality, and Twitter offers a platform that can outpace even the most trustworthy news aggregators. The influence of social media outlets on stock markets and stock prices of entities such as Lmp Automotive Holdings has been proven in recent years. We extract public sentiment from Twitter posts that could be utilized to determine whether Lmp Automotive's prices will increase or decrease.
Twitter's metrics such as likes, followers, and engagement can be good indicators of the reliance and probability of reaction to a specific tweet regarding Lmp Automotive Holdings. Our Twitter sentiment analysis of Lmp Automotive Stock helps investors make informed decisions by leveraging the power of the community. It is a perfect supplementary tool for any beginner or an experienced trader.

Lmp Automotive (NASDAQ:LMPX) high volatility trend continues

The company currently holds 131.86 M in liabilities with Debt to Equity (D/E) ratio of 2.75, implying Lmp Automotive greatly relies on financing operations through barrowing. Lmp Automotive Holdings has a current ratio of 1.46, which is within standard range for the sector. Debt can assist Lmp Automotive until it has trouble settling it off, either with new capital or with free cash flow. So, Lmp Automotive's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Lmp Automotive Holdings sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Lmp Automotive to invest in growth at high rates of return. When we think about Lmp Automotive's use of debt, we should always consider it together with cash and equity.
On a scale of 0 to 100, Lmp Automotive holds a performance score of 3. The company secures a Beta (Market Risk) of 2.0111, which conveys a somewhat significant risk relative to the market. Let's try to break down what Lmp Automotive's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Lmp Automotive will likely underperform. Although it is extremely important to respect Lmp Automotive Holdings price patterns, it is better to be realistic regarding the information on equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Lmp Automotive Holdings technical indicators, you can presently evaluate if the expected return of 0.24% will be sustainable into the future. Please exercises Lmp Automotive Holdings potential upside, as well as the relationship between the accumulation distribution and price action indicator to make a quick decision on whether Lmp Automotive Holdings current price movements will revert.
Volatility is a rate at which the price of Lmp Automotive 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 Lmp Automotive may increase or decrease. In other words, similar to Lmp Automotive's beta indicator, it measures the risk of Lmp Automotive and helps estimate the fluctuations that may happen in a short period of time. So if prices of Lmp Automotive 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 Lmp Automotive's Liquidity

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

How does Lmp Automotive utilize its cash?

To perform a cash flow analysis of Lmp Automotive, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Lmp Automotive is receiving and how much cash it distributes out in a given period. The Lmp Automotive cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Lmp Automotive Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Lmp Automotive reported Net Cash Flow from Operations of (7.25 Million) in 2021

Lmp Automotive Volatility Drivers

Lmp Automotive unsystematic risk is unique to Lmp Automotive Holdings and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Lmp Automotive you can also buy Starbucks Corp. You can also mitigate this risk by investing in the auto & truck dealerships sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Lmp Automotive important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Lmp Automotive income statement and balance sheet. Here are more details about Lmp Automotive volatility.
Click cells to compare fundamentals

Lmp Automotive exotic insider transaction detected

Legal trades by Lmp Automotive insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Lmp Automotive insider trading alert for general transaction of common stock by Tawfik Samer, President and CEO, on 17th of May 2022. This event was filed by Lmp Automotive Holdings I with SEC on 2022-05-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Going after Lmp Automotive Financials

The current bullish price patterns experienced by current Lmp Automotive Holdings shareholders may encourage investors to take a closer look at the firm as it is trading at a share price of 4.15 on 35,200 in trading volume. The company directors and management have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in May. The stock standard deviation of daily returns for 90 days investing horizon is currently 5.8. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Lmp Automotive Holdings partners.

Will Lmp Automotive investors exit after the slide?

The semi variance is down to 19.49 as of today. Lmp Automotive Holdings exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Lmp Automotive Holdings individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Lmp Automotive future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lmp Automotive's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lmp Automotive'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.

Lmp Automotive Implied Volatility

Lmp Automotive's implied volatility exposes the market's sentiment of Lmp Automotive Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Lmp Automotive's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Lmp Automotive stock will not fluctuate a lot when Lmp Automotive's options are near their expiration.

Our Conclusion on Lmp Automotive

While few other entities under the auto & truck dealerships industry are still a bit expensive, Lmp Automotive may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Lmp Automotive 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 Lmp Automotive.

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 Lmp Automotive Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com