Landec Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>LND</div>
LNDC -- USA Stock  

USD 9.34  0.16  1.74%

It looks like Farmer Brothers will continue to recover much faster as its share price surged up 0.33% today to Landec's 3.6822%. As many rational traders are trying to avoid consumer defensive space, it makes sense to go over Landec a little further and understand how it stands against Farmer Brothers and other similar entities. We are going to analyze some of the competitive aspects of both Landec and Farmer.
Published over a month ago
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Will Farmer Brothers investors switch to Landec (NASDAQ:LNDC)?
By analyzing existing technical and fundamental indicators between Landec and Farmer, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Farmer with a short position in Landec. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Landec has an asset utilization ratio of 171.31 percent. This suggests that the company is making $1.71 for each dollar of assets. An increasing asset utilization means that Landec is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Landec or Farmer is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Landec's Liquidity

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

Correlation Between Landec and Farmer Brothers

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Landec together with similar or unrelated positions with a negative correlation. For example, you can also add Farmer Brothers to your portfolio. If Farmer Brothers is not perfectly correlated to Landec it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Landec for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between LNDC and FARM for more information.

Acquisition by James Hall of 7636 shares of Landec subject to Rule 16b-3

Legal trades by Landec 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:
Landec insider trading alert for grant of incentive stock option (right to buy) by James Hall, Vice President, on 28th of July 2020. This event was filed by Landec Corp with SEC on 2020-07-28. 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.

What is driving Landec Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Landec revenue. Based on the latest financial disclosure, Landec reported 587.01 M of revenue. This is 96.05% lower than that of the Consumer Defensive sector and 92.94% lower than that of the Packaged Foods industry. The revenue for all United States stocks is 93.78% higher than that of Landec. As for Farmer Brothers we see revenue of 562.29 M, which is 93.24% lower than that of the Packaged Foods

Sector
8.3 B
LNDC587.01 Million6.2
Sector8.32 Billion87.86
FARM562.29 Million5.94

Landec implied volatility may change after the rise

Current Information Ratio is up to -0.04. Price may slip again. Landec shows above-average downside volatility for the selected time horizon. We advise investors to inspect Landec further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Landec future alpha.

Our Final Take On Landec

Whereas some firms within the packaged foods industry are still a little expensive, even after the recent corrections, Landec may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Landec at this time. The Landec risk-reward trade off is not appealing enough to do any trading. 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 Landec.

About Contributor

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 Raphi Shpitalnik do not own shares of Landec. Please refer to our Terms of Use for any information regarding our disclosure principles.

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