PAR Par Technology stock Story

PAR -  USA Stock  

USD 65.59  1.85  2.74%

It seems PAR Technology will continue to recover much faster as its share price surged up 1.64% today. PAR Technology's current daily volatility is 3.34 percent, with a beta of 0.27 and an alpha of 0.34 over DOW. As many baby boomers are still indifferent towards current market swings, it makes sense to sum up PAR Technology. We will evaluate if PAR Technology shares are reasonably priced going into December.
Published over six months ago
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Is PAR Technology (NYSE:PAR) a new disruptor?
The company runs under Technology sector within Software—Application industry. On a scale of 0 to 100, PAR Technology holds a performance score of 8. The firm holds a Beta of 0.2687, which implies not very significant fluctuations relative to the market. Let's try to break down what PAR Technology's beta means in this case. As returns on the market increase, PAR Technology returns are expected to increase less than the market. However, during the bear market, the loss on holding PAR Technology will be expected to be smaller as well. Although it is vital to follow PAR Technology current trending patterns, it is good to be conservative about what you can do with the information regarding equity existing price patterns. The approach into forecasting 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 inspecting PAR Technology technical indicators, you can now evaluate if the expected return of 0.42% will be sustainable into the future. Please employ PAR Technology potential upside, as well as the relationship between the kurtosis and day typical price to make a quick decision on whether PAR Technology historical price patterns will revert.
Investing in Par Technology, 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 Par Technology 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 Par Technology's 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 Par Technology 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 Par Technology. Your research has to be compared to or analyzed against Par Technology's peers to derive any actionable benefits. When done correctly, Par Technology'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 Par Technology Corp.

How important is Par Technology's Liquidity

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

How PAR Par Technology utilizes its cash?

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

Par Technology Correlation with Peers

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

Breaking down Par Technology Indicators

PAR Technology appears to be very steady, given 1 month investment horizon. PAR Technology maintains Sharpe Ratio (i.e. Efficiency) of 0.12, which implies the company had 0.12% of return per unit of standard deviation over the last month. Our approach into forecasting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for PAR Technology, which you can use to evaluate future volatility of the entity. Please employ PAR Technology Market Risk Adjusted Performance of 1.33, coefficient of variation of 898.94, and Mean Deviation of 2.51 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

PAR Technology technical analysis connotes possible bounce back

Market risk adjusted performance is down to 1.33. It may connote a possible volatility fall. PAR Technology shows above-average downside volatility for the selected time horizon. We advise investors to inspect PAR Technology further and ensure that all market timing and asset allocation strategies are consistent with the estimation of PAR Technology future alpha.

While some other entities under the software—application industry are still a bit expensive, PAR Technology may offer a potential longer-term growth to retail investors. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of PAR Technology 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 PAR Technology.

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 Ellen Johnson do not own shares of Par Technology Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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