Proto Story

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PRLB -- USA Stock  

USD 145.77  15.00  11.47%

While some millenniums are indifferent towards industrials space, it makes sense to go over Proto Labs in terms of its current potentials. As we have suggested previously, Proto Labs is beginning its slip as investors shift to be more bearish due to the increased sector volatility. The returns on investing in Proto Labs and the market returns of the last few months appear uncorrelated. Weak basic indicators of the company may also suggest signs of long term losses for Proto investors. Proto Labs is scheduled to announce its earnings today. The next earnings report is expected on the 29th of April 2021.
Published over two weeks ago
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Will Proto Labs (NYSE:PRLB) continue to slip in March?
Proto Labs's average rating is Hold from 3 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Proto Labs market sentiment investors' perception of the future value of Proto. Let us look at a few aspects of Proto technical analysis. The company has Profit Margin (PM) of 12.8 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 22.79 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.23.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Proto Labs. In general, we focus on analyzing Proto Labs stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Proto Labs's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Proto Labs's intrinsic value. In addition to deriving basic predictive indicators for Proto Labs, we also check how macroeconomic factors affect Proto Labs price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Proto Labs' 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 Proto Labs 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 Proto Labs. Your research has to be compared to or analyzed against Proto Labs' peers to derive any actionable benefits. When done correctly, Proto Labs' 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 Proto Labs.

How does Proto Stands against Peers?

Analyzing Proto Labs competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Proto Labs across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Proto Labs Competition Details

How Proto utilizes its cash?

To perform a cash flow analysis of Proto Labs, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Proto Labs is receiving and how much cash it distributes out in a given period. The Proto Labs cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Proto Labs Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 106.97 Million

Acquisition by Bjoern Klaas of 1826 shares of Proto Labs subject to Rule 16b-3

Legal trades by Proto Labs 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:
Proto insider trading alert for grant of employee stock option (right to buy) by Bjoern Klaas, VP and Mng Director-PL Europe, on 18th of February 2021. This event was filed by Proto Labs Inc with SEC on 2021-02-18. Statement of changes in beneficial ownership - SEC Form 4. Bjoern Klaas currently serves as vice president managing director of Proto Labs [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.

Closer look at Proto Labs Downside Variance

Proto Labs has current Downside Variance of 14.64. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.

Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.

Downside Variance 
 = 
SUM(RET DEV)2 
N(ER) 
 = 
14.64
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N(ER) = Number of points with returns less than expected return for the period
Let's now compare Proto Labs Downside Variance to its closest peers:
PRLB
TYEKF
VMI
WOR
ATI
PRLB14.637332284499106
TYEKF8.65
VMI2.14
WOR4.4
ATI6.96

Our take on Proto Labs to turn the corner

Potential upside is down to 7.76. It may suggest a possible volatility slip. Proto Labs shows above-average downside volatility for the selected time horizon. We advise investors to inspect Proto Labs further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Proto Labs future alpha.

The Current Takeaway on Proto Labs Investment

Whereas some other companies under the metal fabrication industry are still a bit expensive, Proto Labs may offer a potential longer-term growth to investors. In closing, as of the 12th of February 2021, we believe that Proto Labs is currently overvalued with below average odds of financial turmoil in the next two years. Our present 30 days buy-or-sell advice on the company is Strong Sell.

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 Gabriel Shpitalnik do not own shares of Proto Labs. Please refer to our Terms of Use for any information regarding our disclosure principles.

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