| 2021 | 2022 | 2023 | 2024 (projected) | Gross Profit | 11.7M | 10.9M | 12.5M | 9.9M | Total Revenue | 16.8M | 15.9M | 18.3M | 18.2M |
Is it time to hedge Bridgeline Digital (USA Stocks:BLIN) volatility
 | By Nico Santiago | Macroaxis Story |
Timing is everything, especially when it comes to the stock market. Bridgeline Digital, trading under the ticker BLIN on NASDAQ, has been catching the eye of investors due to its recent price swings. With a Price Action Indicator of 0.18 and a Rate of Daily Change at 1.16, the stock's movements suggest a dynamic environment ripe for those looking to leverage volatility. Despite a fiscal year ending in September with a loss, the Analyst Overall Consensus remains a Buy, hinting at potential upside. The Analyst Target Price Estimated Value stands at $3.17, offering a glimpse of optimism for those willing to navigate the current market conditions. As the technology sector continues to evolve, understanding these indicators could be key to making informed decisions about Bridgeline Digital. Bridgeline Digital is currently delivering an average daily return of 0.4362%, with a risk factor of 4.7534% over the next 60 days. While some investors are drawn to the software sector's potential, others are cautious about Bridgeline Digital's current volatility. Let's explore why this year might bring new opportunities for Bridgeline Digital shareholders.
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Reviewed by Gabriel Shpitalnik
Bridgeline Digital has about $3.89 million in cash and generates $277,000 in positive cash flow from its operations. This gives the company a cash-per-share (CPS) ratio of $0.38.
Top Findings
Bridgeline Digital (NASDAQ: BLIN) has been making waves with its notable volatility, highlighted by a coefficient of variation standing at an impressive 3.4K, which suggests significant price fluctuations that traders could potentially exploit for profit. Coupled with a high downside variance of 18.58, this stock exhibits a considerable risk factor, making it an intriguing choice for those who thrive on dynamic market movements and are looking to leverage short-term trading opportunities.Volatility is a rate at which the price of Bridgeline Digital or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Bridgeline Digital may increase or decrease. In other words, similar to Bridgeline's beta indicator, it measures the risk of Bridgeline Digital and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bridgeline Digital fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.Watch out for price decline
Please consider monitoring Bridgeline Digital on a daily basis if you are holding a position in it. Bridgeline Digital is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. 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 Bridgeline Digital stock to be traded above the $1 level to remain listed. If Bridgeline Digital 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 important is Bridgeline Digital's Liquidity
Bridgeline Digital financial leverage refers to using borrowed capital as a funding source to finance Bridgeline Digital ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bridgeline Digital 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. Financial leverage can amplify the potential profits to Bridgeline Digital's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Bridgeline Digital's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Bridgeline Digital's total debt and its cash.
Bridgeline Digital Gross Profit
Bridgeline Digital Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Bridgeline Digital previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Bridgeline Digital Gross Profit growth over the last 10 years. Please check Bridgeline Digital's gross profit and other fundamental indicators for more details.
Bridgeline Digital Volatility Drivers
Bridgeline Digital unsystematic risk is unique to Bridgeline Digital and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Bridgeline Digital you can also buy Datasea. You can also mitigate this risk by investing in the information technology sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Bridgeline Digital important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Bridgeline Digital income statement and balance sheet. Here are more details about Bridgeline volatility.Click cells to compare fundamentals
Breaking down the case for Bridgeline Digital
Bridgeline Digital reported the previous year's revenue of 15.88 M. Net Loss for the year was (9.44 M) with profit before overhead, payroll, taxes, and interest of 11.7 M.
Volatility is the price of admission for the chance to capture higher returns, and Bridgeline Digital's current market behavior might just be an opportunity for savvy investors.With a beta of 1.96, the stock shows a higher sensitivity to market movements, suggesting that its price can swing more dramatically than the broader market. This could appeal to traders looking to capitalize on short-term price fluctuations, especially considering the stock's potential upside of 8.76%. However, with a return on equity showing losses of 0.64 and a probability of bankruptcy at 45.49%, it's crucial to weigh these opportunities against the inherent risks. For those willing to embrace the turbulence, Bridgeline Digital's current landscape offers both promise and peril..
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