LATAM Airlines (Chile) Probability of Future Stock Price Finishing Under 12.01
| LTM Stock | CLP 13.99 0.09 0.64% |
LATAM |
LATAM Airlines Target Price Odds to finish below 12.01
The tendency of LATAM Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to drop to 12.01 or more in 90 days |
| 13.99 | 90 days | 12.01 | about 21.54 |
Based on a normal probability distribution, the odds of LATAM Airlines to drop to 12.01 or more in 90 days from now is about 21.54 (This LATAM Airlines Group probability density function shows the probability of LATAM Stock to fall within a particular range of prices over 90 days) . Probability of LATAM Airlines Group price to stay between 12.01 and its current price of 13.99 at the end of the 90-day period is about 72.87 .
Assuming the 90 days trading horizon LATAM Airlines Group has a beta of -0.15. This indicates as returns on the benchmark increase, returns on holding LATAM Airlines are expected to decrease at a much lower rate. During a bear market, however, LATAM Airlines Group is likely to outperform the market. Additionally LATAM Airlines Group has an alpha of 0.2857, implying that it can generate a 0.29 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). LATAM Airlines Price Density |
| Price |
Predictive Modules for LATAM Airlines
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as LATAM Airlines Group. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.LATAM Airlines Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. LATAM Airlines is not an exception. The market had few large corrections towards the LATAM Airlines' value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold LATAM Airlines Group, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of LATAM Airlines within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | 0.29 | |
β | Beta against Dow Jones | -0.15 | |
σ | Overall volatility | 0.83 | |
Ir | Information ratio | 0.10 |
LATAM Airlines Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of LATAM Airlines for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for LATAM Airlines Group can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| LATAM Airlines Group has accumulated 2.58 B in total debt. LATAM Airlines Group has a current ratio of 0.25, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist LATAM Airlines until it has trouble settling it off, either with new capital or with free cash flow. So, LATAM Airlines' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like LATAM Airlines Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for LATAM to invest in growth at high rates of return. When we think about LATAM Airlines' use of debt, we should always consider it together with cash and equity. | |
| The entity reported the revenue of 4.88 B. Net Loss for the year was (4.65 B) with loss before overhead, payroll, taxes, and interest of (79.47 M). | |
| LATAM Airlines Group has accumulated about 1.54 B in cash with (184.1 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.53. | |
| Roughly 30.0% of the company outstanding shares are owned by corporate insiders |
LATAM Airlines Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of LATAM Stock often depends not only on the future outlook of the current and potential LATAM Airlines' investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. LATAM Airlines' indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 606.4 M |
LATAM Airlines Technical Analysis
LATAM Airlines' future price can be derived by breaking down and analyzing its technical indicators over time. LATAM Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of LATAM Airlines Group. In general, you should focus on analyzing LATAM Stock price patterns and their correlations with different microeconomic environments and drivers.
LATAM Airlines Predictive Forecast Models
LATAM Airlines' time-series forecasting models is one of many LATAM Airlines' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary LATAM Airlines' historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.
Things to note about LATAM Airlines Group
Checking the ongoing alerts about LATAM Airlines for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for LATAM Airlines Group help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| LATAM Airlines Group has accumulated 2.58 B in total debt. LATAM Airlines Group has a current ratio of 0.25, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist LATAM Airlines until it has trouble settling it off, either with new capital or with free cash flow. So, LATAM Airlines' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like LATAM Airlines Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for LATAM to invest in growth at high rates of return. When we think about LATAM Airlines' use of debt, we should always consider it together with cash and equity. | |
| The entity reported the revenue of 4.88 B. Net Loss for the year was (4.65 B) with loss before overhead, payroll, taxes, and interest of (79.47 M). | |
| LATAM Airlines Group has accumulated about 1.54 B in cash with (184.1 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.53. | |
| Roughly 30.0% of the company outstanding shares are owned by corporate insiders |
Additional Information and Resources on Investing in LATAM Stock
When determining whether LATAM Airlines Group is a strong investment it is important to analyze LATAM Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact LATAM Airlines' future performance. For an informed investment choice regarding LATAM Stock, refer to the following important reports:Check out LATAM Airlines Backtesting, LATAM Airlines Valuation, LATAM Airlines Correlation, LATAM Airlines Hype Analysis, LATAM Airlines Volatility, LATAM Airlines History as well as LATAM Airlines Performance. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.