Is Teekay (NYSE:TK) moving to revert?
 | By Raphi Shpitalnik | Macroaxis Story |
As many millenniums are trying to avoid energy space, it makes sense to examine Teekay a little further and try to understand its current market patterns. As we have suggested previously, Teekay is beginning its plunge as traders shift to be more bearish due to the increased sector volatility. The returns on investing in Teekay and the market returns of the last few months appear disconnected. Inconsistent basic indicators of the firm may also signify signs of long-lasting losses for Teekay traders. Teekay is scheduled to announce its earnings tomorrow.
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Reviewed by Gabriel Shpitalnik
Teekay's average rating is Hold from 5 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 Teekay market sentiment investors' perception of the future value of Teekay. Let us look at a few aspects of Teekay technical analysis.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Teekay. Your research has to be compared to or analyzed against Teekay's peers to derive any actionable benefits. When done correctly, Teekay's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Teekay.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Teekay. In general, sophisticated investors focus on analyzing Teekay stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Teekay'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 Teekay's intrinsic value. In addition to deriving basic predictive indicators for Teekay, many experienced traders also check how macroeconomic factors affect Teekay 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, anticipate that the market will even out over time. This tendency of Teekay'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.
How important is Teekay's Liquidity
Teekay financial leverage refers to using borrowed capital as a funding source to finance Teekay ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Teekay 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. Financial leverage can amplify the potential profits to Teekay's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Teekay's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Teekay's total debt and its cash.
Teekay Gross Profit
Teekay Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Teekay previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Teekay Gross Profit growth over the last 10 years. Please check Teekay's gross profit and other fundamental indicators for more details.
A Deeper Perspective On Teekay
The entity has a beta of 0.096. Let's try to break down what Teekay's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Teekay will likely underperform. The beta indicator helps investors understand whether Teekay moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Teekay deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The big decline in price over the last few months for Teekay created some momentum for traders as it was traded today as low as 2.36 and as high as 2.54 per share. The company directors and management failed to add value to investors and positioning the company supply of money to exploit market volatility in July. However, diversifying your holdings with Teekay or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.55. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Teekay partners.
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