LightPath Story

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LPTH -- USA Stock  

USD 4.03  0.13  3.12%

LightPath Enterprise Value is most likely to increase significantly in the upcoming years. The preceding year's Enterprise Value was reported at 29.49 Million. The current Invested Capital is estimated to increase to about 34.7 M, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease to roughly 2.1 M. The basic intention for this outlook is to give stockholders our perspective on LightPath for October. We will forecast LightPath value for stockholders.
Published over three months ago
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Our projection for LightPath (NASDAQ:LPTH) in October
The entity has a beta of 0.0127. Let's try to break down what LightPath's beta means in this case. LightPath returns are very sensitive to returns on the market. As the market goes up or down, LightPath is expected to follow. The beta indicator helps investors understand whether LightPath moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if LightPath deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as LightPath. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for LightPath

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of LightPath's stock 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 LightPath 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 LightPath. Your research has to be compared to or analyzed against LightPath's peers to derive any actionable benefits. When done correctly, LightPath's 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 LightPath.

How important is LightPath's Liquidity

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

How LightPath utilizes its cash?

To perform a cash flow analysis of LightPath, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash LightPath is receiving and how much cash it distributes out in a given period. The LightPath cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. LightPath Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 4.29 Million

Purchase by Rubin Shmuel of 1500 shares of LightPath

Legal trades by LightPath 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:
LightPath insider trading alert for perchase of class a common stock by Rubin Shmuel, Chief Executive Officer, on 7th of December 2020. This event was filed by Lightpath Technologies In with SEC on 2020-12-07. 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.

Detailed Perspective On LightPath

LightPath is displaying above-average volatility over the selected time horizon. Investors should scrutinize LightPath independently to ensure intended market timing strategies are aligned with expectations about LightPath volatility.

Margin Breakdown

EBITDA Margin0.0786
Gross Margin0.48
Profit Margin(0.0932)

LightPath has 94 percent odds to go over $2.19 this year

Current treynor ratio indicator falls down to -9.34. Possible price rise? LightPath is displaying above-average volatility over the selected time horizon. Investors should scrutinize LightPath independently to ensure intended market timing strategies are aligned with expectations about LightPath volatility.

Our Conclusion on LightPath

While few other entities in the electronic components industry are either recovering or due for a correction, LightPath may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the current economy, it is better to hold off any trading of LightPath 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 LightPath.

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 Vlad Skutelnik do not own shares of LightPath. Please refer to our Terms of Use for any information regarding our disclosure principles.

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