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Is Ironnet (NYSE:IRNT) gaining more confidence from private investors?

October 19, 2021  By
In general, we focus on analyzing Ironnet (NYSE:IRNT) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Ironnet daily price indicators and compare them against related drivers. Today's article will review Ironnet. What exactly are Ironnet shareholders getting in November?
Published over a year ago
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Reviewed by Rifka Kats

Our advice tool can cross-verify current analyst consensus on Ironnet and to analyze the company potential to grow in the current economic cycle.
The successful prediction of Ironnet 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 Ironnet, 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 Ironnet based on Ironnet hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Ironnet's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ironnet's related companies.

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.

Use Technical Analysis to project Ironnet expected Price

Ironnet 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, delisted stock market cycles, or different charting patterns.
A focus of Ironnet technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Ironnet 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 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.

Breaking it down a bit more

Ironnet reported the previous year's revenue of 26.87 M. Net Loss for the year was (57.34 M) with profit before overhead, payroll, taxes, and interest of 22.2 M.

Deferred Revenue Breakdown

Ironnet Deferred Revenue yearly trend continues to be comparatively stable with very little volatility. Deferred Revenue will likely drop to about 33.7 M in 2021. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Ironnet Deferred Revenue is comparatively stable at the moment as compared to the past year. Ironnet reported Deferred Revenue of 34.04 Million in 2020
2010
2020
2021
201020.31 Million
202034.04 Million
202133.65 Million

Will Ironnet growth be real after the gain?

The semi deviation is down to 7.52 as of today. Ironnet is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Ironnet implied risk. 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.

Our Final Takeaway

Whereas many of the other players under the software—infrastructure industry are still a bit expensive, Ironnet may offer a potential longer-term growth to private investors. Taking everything into account, as of the 19th of October 2021, we believe Ironnet is currently undervalued. It almost neglects market trends and projects average probability of distress in the next two years. However, our current 90 days advice on the firm is Strong Sell.

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Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
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