Meridian Story

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VIVO -- USA Stock  

USD 21.50  0.56  2.54%

It seems Meridian Bioscience will continue to recover much faster as its share price surged up 22.86% today. The entity current daily volatility is 4.2 percent, with a beta of 0.71 and an alpha of 0.78 over DOW. As many millenniums are trying to avoid meridian bioscience, it makes sense to outline Meridian Bioscience a little further and try to understand its current market patterns. We will cover the possibilities of making Meridian Bioscience into a steady grower in March.
Published over three weeks ago
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Will Meridian Bioscience (NASDAQ:VIVO) latest volatility rise scare institutional investors?
Meridian Bioscience currently holds roughly 53.51 M in cash with 47.98 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.24. The company currently holds 76 M in liabilities with Debt to Equity (D/E) ratio of 0.31, which is about average as compared to similar companies. Meridian Bioscience has a current ratio of 3.03, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Investing in Meridian Bioscience, 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 Meridian Bioscience 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 Meridian Bioscience'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 Meridian Bioscience 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 Meridian Bioscience. Your research has to be compared to or analyzed against Meridian Bioscience's peers to derive any actionable benefits. When done correctly, Meridian Bioscience'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 Meridian Bioscience.

How important is Meridian Bioscience's Liquidity

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

How Meridian utilizes its cash?

To perform a cash flow analysis of Meridian Bioscience, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Meridian Bioscience is receiving and how much cash it distributes out in a given period. The Meridian Bioscience cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Meridian Bioscience Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 38.76 Million

Meridian Bioscience Correlation with Peers

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

Exercise or conversion by John Kenny of 23097 shares of Meridian Bioscience subject to Rule 16b-3

Legal trades by Meridian Bioscience 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:
Meridian insider trading alert for exercise of stock options (right to buy) by John Kenny, Chief Executive Officer, on 16th of February 2021. This event was filed by Meridian Bioscience Inc with SEC on 2021-02-16. 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.

Is Meridian Bioscience valued adequately by the market?

Meridian Bioscience is not too volatile given 1 month investment horizon. Meridian Bioscience has Sharpe Ratio of 0.26, which conveys that the firm had 0.26% of return per unit of risk over the last month. Our standpoint towards estimating the risk of a stock is to use both market data as well as company specific technical data. We were able to break down twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.07% are justified by taking the suggested risk. Use Meridian Bioscience Risk Adjusted Performance of 0.1566, mean deviation of 3.04, and Downside Deviation of 4.28 to evaluate company specific risk that cannot be diversified away.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Meridian Bioscience latest rise continue?

Downside variance is down to 18.28. It may entail a possible volatility slide. Meridian Bioscience shows above-average downside volatility for the selected time horizon. We advise investors to inspect Meridian Bioscience further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Meridian Bioscience future alpha.

Our Conclusion on Meridian Bioscience

Whereas some companies within the diagnostics & research industry are still a little expensive, even after the recent corrections, Meridian Bioscience may offer a potential longer-term growth to institutional investors. In closing, as of the 6th of February 2021, our analysis shows that Meridian Bioscience follows the market closely. The company is fairly valued and projects very low probability of distress for the next 2 years. Our latest 30 days Buy-Hold-Sell recommendation on the company is Strong Buy.

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 Meridian Bioscience. Please refer to our Terms of Use for any information regarding our disclosure principles.

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