Ironnet currently holds roughly 14.11
M in cash with (45.13
M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.26.
We provide advice to complement the regular
expert consensus on Ironnet. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Investing in Ironnet, 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 Ironnet 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.
Watch out for price decline
Please consider monitoring Ironnet on a daily basis if you are holding a position in it. Ironnet is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted 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 Ironnet stock to be traded above the $1 level to remain listed. If Ironnet 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 Ironnet's Liquidity
Ironnet
financial leverage refers to using borrowed capital as a funding source to finance Ironnet ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ironnet 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 Ironnet'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 Ironnet'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 Ironnet's total debt and its cash.
Ironnet Correlation with Peers
Investors in Ironnet can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Ironnet. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Ironnet and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Ironnet 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 Ironnet for more details
Breaking it down a bit more
Ironnet appears to be risky, given 3 months investment horizon.
Ironnet holds Efficiency (Sharpe) Ratio of 0.0342, which attests that the entity had 0.0342% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-seven
technical indicators for Ironnet, which you can use to evaluate the future volatility of the firm. Please utilize Ironnet's Market Risk Adjusted Performance of 0.0895,
risk adjusted performance of 0.0313, and Downside Deviation of 7.17 to validate if our risk estimates are consistent with your expectations.
Our Ironnet analysis implies possible reversion in May
Ironnet newest total risk alpha boosts over 0.72. Ironnet is displaying above-average volatility over the selected time horizon. Investors should scrutinize Ironnet independently to ensure intended market timing strategies are aligned with expectations about Ironnet volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ironnet's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ironnet's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Ironnet Implied Volatility
Ironnet's implied volatility exposes the market's sentiment of Ironnet stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Ironnet's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Ironnet stock will not fluctuate a lot when Ironnet's options are near their expiration.
Our Final Take On Ironnet
Whereas many of the other players within the software—infrastructure industry are still a little expensive, even after the recent corrections, Ironnet may offer a potential longer-term growth to private investors. To summarize, as of the 5th of April 2022, our present 90 days 'Buy-vs-Sell' recommendation on the firm is
Hold. We believe Ironnet is
undervalued with
below average chance of bankruptcy for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Ironnet. Please refer to our
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