Orthofix Story

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OFIX -- USA Stock  

USD 43.63  0.76  1.77%

Orthofix Intl is currently generating 0.407% in daily expected returns and assumes 2.2252% risk (volatility on return distribution) over the 60 days horizon. As many adventurous traders are excited about healthcare space, it is only fair to break down the risk of shorting Orthofix Intl NV based on its current volatility spike. We will inspect why some investors are closely monitoring Orthofix Intl's volatility.
Published over a month ago
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Is Orthofix Intl (NASDAQ:OFIX) a good hedge for your existing portfolios?
Orthofix Intl conducts business under Healthcare sector and is part of Medical Devices industry.
Volatility is a rate at which the price of Orthofix Intl 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 Orthofix Intl may increase or decrease. In other words, similar to Orthofix's beta indicator, it measures the risk of Orthofix Intl and helps estimate the fluctuations that may happen in a short period of time. So if prices of Orthofix Intl 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 Orthofix Intl's Liquidity

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

How Orthofix utilizes its cash?

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

Payment of 984 shares by Kenny Kevin J of Orthofix International subject to Rule 16b-3

Legal trades by Orthofix Intl 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:
Orthofix insider trading alert for payment of common stock by Kenny Kevin J, President of Global Spine, on 7th of December 2020. This event was filed by Orthofix Medical Inc 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.

Breaking down the case for Orthofix Intl

The current price rise of Orthofix Intl NV may encourage investors to take a closer look at the company as it is trading at a share price of 46.41 on 104,060 in trading volume. The company executives may have good odds in positioning the company resources to exploit market volatility in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.23. The current volatility is consistent with the ongoing market swings in January 2021 as well as with Orthofix Intl unsystematic, company-specific events.

Our take on today Orthofix Intl slide

The mean deviation is down to 1.7 as of today. Orthofix Intl NV currently demonstrates below-average downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.27. However, we advise investors to further question Orthofix Intl NV expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Orthofix Intl'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 Orthofix Intl'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.

Our Conclusion on Orthofix Intl

While many of the other players under the medical devices industry are still a bit expensive, Orthofix Intl may offer a potential longer-term growth to investors. On the whole, as of the 26th of February 2021, our analysis shows that Orthofix Intl responds to the market. The company is undervalued and projects very low probability of distress for the next 2 years. Our overall 30 days buy-or-sell advice on the company is Strong Buy.

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 Orthofix Intl NV. Please refer to our Terms of Use for any information regarding our disclosure principles.

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