Zovio Stock Story

ZVO
 Stock
  

USD 0.31  0.01  3.12%   

In general, we focus on analyzing Zovio (NASDAQ:ZVO) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Zovio Inc daily price indicators and compare them against related drivers. Let's first try to outline why Zovio investors are seeking stability amid unprecedented economic uncertainty.
Published over two weeks ago
View all stories for Zovio | View All Stories

What is September outlook for Zovio (NASDAQ:ZVO)?

We provide recommendation to complement the prevalent expert consensus on Zovio Inc. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
About 59.0% of the company outstanding shares are owned by institutional investors. Zovio Inc has Price to Book (P/B) ratio of 0.8. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. The entity recorded a loss per share of 2.3. The firm had not issued any dividends in recent years.
The successful prediction of Zovio stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Zovio Inc, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Zovio based on Zovio hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Zovio's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Zovio's related companies.

Watch out for price decline

Please consider monitoring Zovio on a daily basis if you are holding a position in it. Zovio 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 Zovio stock to be traded above the $1 level to remain listed. If Zovio 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.

Use Technical Analysis to project Zovio expected Price

Zovio technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Zovio technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Zovio trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How does Zovio utilize its cash?

To perform a cash flow analysis of Zovio, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Zovio is receiving and how much cash it distributes out in a given period. The Zovio cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Zovio 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 (15.84 Million)

Exercise or conversion by Wilson John Silvanus Jr of 3120 shares of Zovio subject to Rule 16b-3

Legal trades by Zovio 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:
Zovio insider trading alert for exercise of restricted stock unit by Wilson John Silvanus Jr, the corporate stakeholder, on 2nd of June 2022. This event was filed by Zovio Inc with SEC on 2022-06-02. 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 angle On Zovio

The company reported the last year's revenue of 263.03 M. Reported Net Loss for the year was (42.35 M) with profit before taxes, overhead, and interest of 102.86 M.
 2019 2020 2021 2022 (projected)
Weighted Average Shares29.49 M31.96 M33.26 M41.81 M
Revenues417.8 M397.12 M263.03 M269.95 M

Revenues Breakdown

Zovio Revenues yearly trend continues to be quite stable with very little volatility. Revenues may rise above about 270 M this year. Revenues usually refers to amount of Revenue recognized from goods sold; services rendered; insurance premiums; or other activities that constitute an earning process. Interest income for financial institutions is reported net of interest expense and provision for credit losses. Zovio Revenues is quite stable at the moment as compared to the past year. The company's current value of Revenues is estimated at 269.95 Million
2015
2016
2017
2018
2019
2020
2021
2022
2015561.73 Million
2016527.09 Million
2017478.4 Million
2018443.37 Million
2019417.8 Million
2020397.12 Million
2021263.03 Million
2022269.95 Million

The case for Zovio slide maybe to hold

Zovio latest risk adjusted performance surges over 0.18. Zovio Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect Zovio Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Zovio future alpha. Zovio Inc is a potential penny stock. Although Zovio may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Zovio Inc. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Zovio instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

The Current Takeaway on Zovio Investment

Whereas some firms under the education & training services industry are still a bit expensive, Zovio may offer a potential longer-term growth to institutional investors. To conclude, as of the 1st of August 2022, we believe that Zovio is currently undervalued with high odds of distress in the next two years. Our up-to-date 90 days buy-or-sell advice on the company is Strong Hold.

Editorial Staff

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 Zovio Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com