Will stockholders trade more of Levi Strauss in November?


USD 16.41  0.12  0.74%   

26% of stocks are less volatile than Levi Strauss, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. As many conservative investors are still indifferent towards current market risk, it is prudent, from our point of view, to concentrate on Levi Strauss' current volatility. We will examine if the expected returns on Levi Strauss will justify its current volatility.
Published over two months ago
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This firm conducts business under Consumer Cyclical sector and is part of Apparel Manufacturing industry.
Volatility is a rate at which the price of Levi Strauss 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 Levi Strauss may increase or decrease. In other words, similar to Levi Strauss's beta indicator, it measures the risk of Levi Strauss and helps estimate the fluctuations that may happen in a short period of time. So if prices of Levi Strauss 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.

How important is Levi Strauss's Liquidity

Levi Strauss financial leverage refers to using borrowed capital as a funding source to finance Levi Strauss Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Levi Strauss 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. Please check the breakdown between Levi Strauss's total debt and its cash.

How does Levi Strauss utilize its cash?

To perform a cash flow analysis of Levi Strauss, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Levi Strauss is receiving and how much cash it distributes out in a given period. The Levi Strauss cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Exercise or conversion by Harmit Singh of 320000 shares of Levi Strauss subject to Rule 16b-3

Legal trades by Levi Strauss insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Levi Strauss insider trading alert for exercise of stock appreciation rights by Harmit Singh, Executive VP and CFO, on 6th of December 2022. This event was filed by Levi Strauss Co with SEC on 2022-12-06. Statement of changes in beneficial ownership - SEC Form 4. Harmit Singh currently serves as chief financial officer, executive vice president of Levi Strauss [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another angle On Levi Strauss

The company reported the previous year's revenue of 6.25 B. Net Income was 591.9 M with profit before overhead, payroll, taxes, and interest of 3.34 B.

Our perspective of the current Levi Strauss drop

Skewness just dropped to -0.18, may hint to upcoming price decrease. Levi Strauss Co shows above-average downside volatility for the selected time horizon. We advise investors to inspect Levi Strauss Co further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Levi Strauss future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Levi Strauss' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Levi Strauss' 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.

The Bottom Line

When is the right time to buy or sell Levi Strauss Co? Buying stocks such as Levi Strauss isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
The bottom line, as of the 6th of October 2022, our primary 90 days buy-hold-sell recommendation on the company is Cautious Hold. We believe Levi Strauss is currently undervalued with below average chance of financial distress for the next two years.

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 Aina Ster do not own shares of Levi Strauss Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

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