TravelCenters Story

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TA -- USA Stock  

USD 19.06  0.05  0.26%

Allowing for the 90-days total investment horizon, TravelCenters is expected to generate 5.14 times more return on investment than the market. However, the company is 5.14 times more volatile than its market benchmark. It trades about 0.16 of its potential returns per unit of risk. The DOW is currently generating roughly 0.13 per unit of risk. As many adventurous traders are excited about consumer cyclical space, it is only fair to go over the risk of shorting TravelCenters Of America based on its current volatility spike. We will analyze why it could be a different year for TravelCenters shareholders.
Published over a month ago
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TravelCenters (NASDAQ:TA) high volatility trend continues
The company is active under Consumer Cyclical sector as part of Specialty Retail industry. TravelCenters holds a performance score of 11 on a scale of zero to a hundred. The entity has a beta of -1.2965, which indicates a somewhat significant risk relative to the market. Let's try to break down what TravelCenters's beta means in this case. As returns on the market increase, returns on owning TravelCenters are expected to decrease by larger amounts. On the other hand, during market turmoil, TravelCenters is expected to outperform it. Although it is vital to follow TravelCenters Of Ame current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. Our philosophy towards measuring future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if TravelCenters Of America expected return of 1.18 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use TravelCenters Of Ame information ratio, downside variance, day median price, as well as the relationship between the treynor ratio and kurtosis to analyze future returns on TravelCenters Of Ame.
Volatility is a rate at which the price of TravelCenters 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 TravelCenters may increase or decrease. In other words, similar to TravelCenters's beta indicator, it measures the risk of TravelCenters and helps estimate the fluctuations that may happen in a short period of time. So if prices of TravelCenters 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 TravelCenters's Liquidity

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

How TravelCenters utilizes its cash?

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

TravelCenters exotic insider transaction detected

Legal trades by TravelCenters 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:
TravelCenters insider trading alert for general transaction of common stock by Adam Portnoy, the corporate stakeholder, on 23rd of September 2020. This event was filed by Travelcenters Of America with SEC on 2020-09-23. 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 TravelCenters Investor Appetite?

TravelCenters Of Ame generated the yearly revenue of 5.38 B. Reported Net Income was 27.5 M with gross profit of 511.39 M.

Our take on today TravelCenters rise

Current Sortino Ratio is up to 0.1. Price may slip again. TravelCenters Of America is displaying above-average volatility over the selected time horizon. Investors should scrutinize TravelCenters Of America independently to ensure intended market timing strategies are aligned with expectations about TravelCenters volatility.

Our Final Perspective on TravelCenters

Whereas other entities under the specialty retail industry are still a bit expensive, TravelCenters may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to sell some or all of your TravelCenters holdings as it seems the potential growth was already fully factored into the current price. 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 TravelCenters.

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 Achuva Shats do not own shares of TravelCenters Of America. Please refer to our Terms of Use for any information regarding our disclosure principles.

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