Neurometrix Stock Story


USD 3.38  0.13  3.70%   

Given the investment horizon of 90 days Neurometrix is expected to generate 7.74 times more return on investment than the market. However, the company is 7.74 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 -0.06 per unit of risk. As many investors are getting excited about healthcare space, it is fair to outline Neurometrix. We will go over a few points Neurometrix institutional investors should remember regarding its volatility. The latest Neurometrix risk factors may impact the value of the stock as we estimate Neurometrix as currently overvalued. The real value is approaching 3.16 per share.
Published over three weeks ago
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Neurometrix (NASDAQ:NURO) high volatility trend continues

Neurometrix conducts business under Healthcare sector and is part of Medical Devices industry.
On a scale of 0 to 100, Neurometrix holds a performance score of 3. The company secures a Beta (Market Risk) of 1.0316, which conveys a somewhat significant risk relative to the market. Let's try to break down what Neurometrix's beta means in this case. Neurometrix returns are very sensitive to returns on the market. As the market goes up or down, Neurometrix is expected to follow. Although it is vital to follow Neurometrix price patterns, it is good to be conservative about what you can do with the information regarding 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 Neurometrix technical indicators, you can presently evaluate if the expected return of 0.45% will be sustainable into the future. Please exercises Neurometrix sortino ratio, semi variance, as well as the relationship between the Semi Variance and rate of daily change to make a quick decision on whether Neurometrix current price movements will revert.
Volatility is a rate at which the price of Neurometrix 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 Neurometrix may increase or decrease. In other words, similar to Neurometrix's beta indicator, it measures the risk of Neurometrix and helps estimate the fluctuations that may happen in a short period of time. So if prices of Neurometrix 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 Neurometrix's Liquidity

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

How does Neurometrix utilize its cash?

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

Acquisition by Fluegel Bradley M of 27472 shares of Neurometrix subject to Rule 16b-3

Legal trades by Neurometrix 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:
Neurometrix insider trading alert for grant of common stock by Fluegel Bradley M, the corporate stakeholder, on 6th of July 2022. This event was filed by Neurometrix Inc with SEC on 2022-07-06. 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.

A Deeper Perspective

The entity reported the previous year's revenue of 8.4 M. Net Loss for the year was (3.18 M) with profit before overhead, payroll, taxes, and interest of 5.92 M.

Momentum Analysis of Neurometrix suggests possible reversal in August

Neurometrix latest skewness surges over 5.18.
As of the 21st of July, Neurometrix secures the Risk Adjusted Performance of 0.0614, mean deviation of 5.39, and Downside Deviation of 6.1. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Neurometrix, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Neurometrix, which can be compared to its peers in the industry. Please verify Neurometrix jensen alpha and semi variance to decide if Neurometrix is priced some-what accurately, providing market reflects its recent price of 3.86 per share. Given that Neurometrix has jensen alpha of 0.5032, we recommend you to check Neurometrix's last-minute market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Neurometrix Investment

Whereas many of the other players under the medical devices industry are still a bit expensive, Neurometrix may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility 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 Neurometrix.

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

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