Nextgen Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:4em;'>NH</div>
NXGN -- USA Stock  

USD 18.70  0.33  1.80%

It seems NextGen Healthcare will continue to recover much faster as its share price surged up 0.39% today. The entity current daily volatility is 2.15 percent, with a beta of -0.02 and an alpha of 0.83 over DOW. As many millenniums are trying to avoid computers, it makes sense to outline NextGen Healthcare a little further and try to understand its current market patterns. We will look into some reasons why it is still possible for NextGen Healthcare to maintain above-average margins while minimizing volatility.
Published over three weeks ago
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Will the latest NextGen Healthcare volatility rise frighten institutional investors?
NextGen Healthcare currently holds roughly 103.44 M in cash with 92.87 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.55. The company currently holds 111.44 M in liabilities with Debt to Equity (D/E) ratio of 0.27, which may suggest the entity is not taking enough advantage from borrowing. NextGen Healthcare has a current ratio of 1.61, which is within standard range for the sector.
Investing in Nextgen Healthcare, 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 Nextgen Healthcare 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 Nextgen Healthcare'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 Nextgen Healthcare 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 Nextgen Healthcare. Your research has to be compared to or analyzed against Nextgen Healthcare's peers to derive any actionable benefits. When done correctly, Nextgen Healthcare'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 Nextgen Healthcare.

How important is Nextgen Healthcare's Liquidity

Nextgen Healthcare financial leverage refers to using borrowed capital as a funding source to finance Nextgen Healthcare ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nextgen Healthcare 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 Nextgen Healthcare'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 Nextgen Healthcare, but it might be worth checking our own buy vs. sell analysis

Nextgen Healthcare Correlation with Peers

Investors in Nextgen can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Nextgen Healthcare. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Nextgen Healthcare and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Nextgen 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 Nextgen for more details

Sale by Lance Rosenzweig of 6000 shares of Nextgen Healthcare

Legal trades by Nextgen Healthcare 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:
Nextgen insider trading alert for sale of common stock by Lance Rosenzweig, the corporate stakeholder, on 9th of February 2021. This event was filed by Nextgen Healthcare Inc with SEC on 2021-02-09. 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 Nextgen Healthcare Investor Appetite?

NextGen Healthcare appears to be not too volatile, given 1 month investment horizon. NextGen Healthcare has Sharpe Ratio of 0.42, which conveys that the firm had 0.42% of return per unit of risk over the last month. 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. By analyzing NextGen Healthcare technical indicators you can presently evaluate if the expected return of 0.9% is justified by implied risk. Please exercise NextGen Healthcare Risk Adjusted Performance of 0.2968, mean deviation of 1.84, and Downside Deviation of 1.99 to check out if our risk estimates are consistent with your expectations.
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0.830.680.160.91
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0.16-0.22-0.340.17
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0.910.860.710.17
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Some NextGen technical indicators suggest correction

The value at risk is down to -2.83 as of today. NextGen Healthcare has relatively low volatility with skewness of 0.48 and kurtosis of 0.73. However, we advise all investors to independently investigate NextGen Healthcare to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On NextGen Healthcare

Whereas many other companies within the health information services industry are still a little expensive, even after the recent corrections, NextGen Healthcare may offer a potential longer-term growth to institutional investors. Taking everything into account, as of the 26th of January 2021, our up-to-date 30 days buy-sell recommendation on the company is Hold. We believe NextGen Healthcare is overvalued with very small odds of financial distress for the next two years.

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 Nextgen Healthcare. Please refer to our Terms of Use for any information regarding our disclosure principles.

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