Transenterix Story

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TRXC -- USA Stock  

USD 3.90  0.48  10.96%

It appears TransEnterix will continue to recover much faster as its share price surged up 14.51% today. This firm current daily volatility is 16.31 percent, with a beta of 0.32 and an alpha of 4.15 over DOW. As many of us are excited about disruptive technologies, it is fair to go over TransEnterix. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Chances of TransEnterix to slip after the volatility builds up
TransEnterix currently holds roughly 19.96 M in cash with (48.28 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.2. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. TransEnterix has an asset utilization ratio of 1.11 percent. This suggests that the company is making $0.0111 for each dollar of assets. An increasing asset utilization means that TransEnterix is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Transenterix, 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 Transenterix 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 Transenterix's 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 Transenterix 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 Transenterix. Your research has to be compared to or analyzed against Transenterix's peers to derive any actionable benefits. When done correctly, Transenterix'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 Transenterix.

How important is Transenterix's Liquidity

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

How Transenterix utilizes its cash?

To perform a cash flow analysis of Transenterix, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Transenterix is receiving and how much cash it distributes out in a given period. The Transenterix cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Transenterix Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (84.51 Million)

Transenterix Correlation with Peers

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

Acquisition by Shameze Rampertab of 59200 shares of Transenterix subject to Rule 16b-3

Legal trades by Transenterix 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:
Transenterix insider trading alert for grant of restricted stock units by Shameze Rampertab, EVP Chief Financial Officer, on 8th of February 2021. This event was filed by Transenterix Inc with SEC on 2021-02-08. 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.

Another Deeper Perspective

TransEnterix is abnormally volatile given 1 month investment horizon. TransEnterix owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.28, which indicates the firm had 0.28% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use TransEnterix market data together with company specific technical indicators. We are able to interpolate and collect twenty-one different technical indicators, which can help you to evaluate if expected returns of 4.63% are justified by taking the suggested risk. Use TransEnterix Risk Adjusted Performance of 0.2655, semi deviation of 4.09, and Coefficient Of Variation of 377.69 to evaluate company specific risk that cannot be diversified away.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Another 3 percent rise for TransEnterix

TransEnterix current variance builds up over 253.16. As of the 23rd of January, TransEnterix has the Coefficient Of Variation of 377.69, risk adjusted performance of 0.2655, and Semi Deviation of 4.09. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of TransEnterix, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We are able to interpolate and collect nineteen technical drivers for TransEnterix, which can be compared to its competition. Please validate TransEnterix variance, as well as the relationship between the value at risk and skewness to decide if TransEnterix is priced more or less accurately, providing market reflects its prevalent price of 3.71 per share. Given that TransEnterix has jensen alpha of 4.15, we advise you to double-check TransEnterix's current market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On TransEnterix

Whereas other entities within the medical devices industry are still a little expensive, even after the recent corrections, TransEnterix may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither acquire new shares of TransEnterix nor short your existing holdings in the Stock. It seems the expected volatility has not yet been 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 TransEnterix.

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 Vlad Skutelnik do not own shares of Transenterix. Please refer to our Terms of Use for any information regarding our disclosure principles.

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