UTSI Utstarcom stock Story

UTSI -  USA Stock  

USD 1.34  0.05  3.60%

As many millenniums are trying to avoid technology space, it makes sense to concentrate on UTStarcom Holdings Corp a little further and try to understand its current market patterns. As expected, UTStarcom Holdings is starting to reaffirm its true potential as stockholders are becoming more and more confident in the future outlook. The returns on the market and returns on UTStarcom Holdings appear somewhat related for the last few months. Fragile basic indicators of the company may also hint to signs of long-run losses for UTStarcom stockholders. UTStarcom Holdings Corp is scheduled to announce its earnings today. The stock goes through an unusual volatility.
Published over six months ago
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Is UTStarcom Holdings (NASDAQ:UTSI) about to rebound?
UTStarcom Holdings Corp's average rating is Strong Buy from 1 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 UTStarcom Holdings market sentiment investors' perception of the future value of UTStarcom. Let us look at a few aspects of UTStarcom technical analysis. The company has Profit Margin (PM) of (5.96) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (9.35) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.09.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Utstarcom Holdings C. In general, we focus on analyzing Utstarcom Holdings stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Utstarcom Holdings'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 Utstarcom Holdings's intrinsic value. In addition to deriving basic predictive indicators for Utstarcom Holdings, we also check how macroeconomic factors affect Utstarcom Holdings 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 Utstarcom Holdings' 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 Utstarcom Holdings 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 Utstarcom Holdings. Your research has to be compared to or analyzed against Utstarcom Holdings' peers to derive any actionable benefits. When done correctly, Utstarcom Holdings' 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 Utstarcom Holdings.

Watch out for price decline

Please consider monitoring Utstarcom Holdings on a daily basis if you are holding a position in it. Utstarcom Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Utstarcom Holdings stock to be traded above the $1 level to remain listed. If Utstarcom Holdings stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How does UTSI Utstarcom Stands against Peers?

Analyzing Utstarcom Holdings 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 Utstarcom Holdings 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 Utstarcom Holdings Competition Details

How UTSI Utstarcom utilizes its cash?

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

Acquisition by Christopher Philip of 50000 shares of UTStarcom Holdings subject to Rule 16b-3

Legal trades by Utstarcom Holdings 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:
UTStarcom Holdings Corp insider trading alert for grant of restricted stock units by Christopher Philip, President UTS Personal Comm., on 18th of June 2020. This event was filed by Utstarcom Holdings Corp with SEC on 2008-03-04. 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

The entity has a beta of -0.2681. Let's try to break down what UTStarcom'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, UTStarcom Holdings will likely underperform. The beta indicator helps investors understand whether UTStarcom Holdings 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 UTStarcom 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 UTStarcom Holdings created some momentum for stockholders as it was traded today as low as 0.86 and as high as 1.19 per share. The company executives failed to add value to investors and positioning the company supply of money to exploit market volatility in October. However, diversifying your holdings with UTStarcom Holdings Corp 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 4.54. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the UTStarcom Holdings Corp partners.

Another 3 percent rise for UTStarcom Holdings

Current value at risk is at -7.38. As of the 8th of November, UTStarcom Holdings has the risk adjusted performance of (0.28), and Coefficient Of Variation of (409.99). Compared to fundamental indicators, the technical analysis model makes it possible for you to check available technical drivers of UTStarcom Holdings Corp, 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 were able to analyze nineteen technical drivers for UTStarcom Holdings Corp, which can be compared to its competition. Please validate UTStarcom Holdings Corp jensen alpha and downside variance to decide if UTStarcom Holdings is priced fairly, providing market reflects its prevalent price of 1.03 per share. Given that UTStarcom Holdings Corp is a hitting penny stock territory we recommend to closely look at its total risk alpha.

The Current Takeaway on UTStarcom Holdings Investment

While some other firms under the communication equipment industry are still a bit expensive, UTStarcom Holdings may offer a potential longer-term growth to stockholders. The bottom line, as of the 8th of November 2020, we believe that UTStarcom Holdings is currently undervalued with high odds of financial distress in the next two years. However, our current 30 days 'Buy-vs-Sell' recommendation 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 Raphi Shpitalnik do not own shares of Utstarcom Holdings C. Please refer to our Terms of Use for any information regarding our disclosure principles.

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