What is July outlook for Ironnet (NYSE:IRNT)?

Ironnet is scheduled to announce its earnings tomorrow. As many millenniums are getting excited about technology space, it is only fair to review the feasibility of shorting Ironnet. Should we be more optimistic in anticipation of a recovery?
Published over a year ago
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Reviewed by Michael Smolkin

The company retains a Market Volatility (i.e., Beta) of 1.8002, which attests to a somewhat significant risk relative to the market. Let's try to break down what Ironnet's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Ironnet will likely underperform. Even though it is essential to pay attention to Ironnet current price history, it is always good to be careful when utilizing equity current price movements. Our philosophy towards determining any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Ironnet exposes twenty-one different technical indicators, which can help you to evaluate its performance. Ironnet has an expected return of -0.53%. Please be advised to check out Ironnet standard deviation, value at risk, as well as the relationship between the Value At Risk and kurtosis to decide if Ironnet performance from the past will be repeated at some point in the near future.
What is the right price you would pay to acquire a share of Ironnet? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

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.

What is happening with Ironnet this year

Annual and quarterly reports issued by Ironnet are formal financial statements that are published yearly and quarterly and sent to Ironnet stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Ironnet often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

Is Ironnet a risky opportunity?

Let's check the volatility. Ironnet is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Ironnet (NYSE:IRNT) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of an Ironnet stock makes you a part-owner of that company.

Ironnet Current Consensus

Here is the newest trade recommendation based on an ongoing consensus estimate among financial analysis covering Ironnet. The Ironnet consensus assessment is calculated by taking the average estimates from all of the analysts covering Ironnet
Hold
4
Strong Buy00.0
Buy00.0
Hold4100.0
Sell00.0
Strong Sell00.0

Will Ironnet quickly start a throwback?

Newest mean deviation is at 4.14. Ironnet exhibits very low volatility with skewness of 0.32 and kurtosis of 0.08. However, we advise investors to further study Ironnet technical indicators to make sure all market info is available and is reliable. 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.

The Bottom Line

Whereas some companies in the software—infrastructure industry are either recovering or due for a correction, Ironnet may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take up nor exit any shares of Ironnet at this time. The Ironnet risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ironnet.

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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 Raphi Shpitalnik do not own shares of Ironnet. Please refer to our Terms of Use for any information regarding our disclosure principles.

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