Adagene Stock Buy Hold or Sell Recommendation

ADAG
 Stock
  

USD 1.13  0.05  4.63%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Adagene is 'Hold'. Macroaxis provides Adagene buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Adagene positions. The advice algorithm takes into account all of Adagene's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Adagene's buy-and-hold perspective. Please continue to Adagene Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Adagene and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Adagene.

Execute Adagene Buy or Sell Advice

The Adagene recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Adagene. Macroaxis does not own or have any residual interests in Adagene or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Adagene's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AdageneBuy Adagene
Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Adagene has a Risk Adjusted Performance of (0.09), Jensen Alpha of (0.37), Total Risk Alpha of (0.51) and Treynor Ratio of (0.38)
We provide trade advice to complement the prevailing expert consensus on Adagene. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Adagene is not overpriced, please confirm all Adagene fundamentals, including its shares owned by institutions, revenue, and the relationship between the shares outstanding and price to book . Given that Adagene is a hitting penny stock territory we recommend to closely look at its number of shares shorted.

Adagene Trading Alerts and Improvement Suggestions

Adagene generated a negative expected return over the last 90 days
Adagene may become a speculative penny stock
Adagene has high historical volatility and very poor performance
The company reported the previous year's revenue of 10.18 M. Net Loss for the year was (73.18 M) with profit before overhead, payroll, taxes, and interest of 10.18 M.
Adagene currently holds about 168.04 M in cash with (43.41 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.87, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
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Adagene Returns Distribution Density

The distribution of Adagene's historical returns is an attempt to chart the uncertainty of Adagene's future price movements. The chart of the probability distribution of Adagene stock daily returns describes the distribution of returns around its average expected value. We use Adagene price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Adagene returns is essential to provide solid investment advice for Adagene.
Mean Return-0.31Value At Risk-7.77
Potential Upside6.25Standard Deviation4.85
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Adagene historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Adagene Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Adagene or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Adagene's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Adagene stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.37
β
Beta against NYSE Composite0.84
σ
Overall volatility
4.89
Ir
Information ratio -0.08

Adagene Volatility Alert

Adagene exhibits very low volatility with skewness of -0.16 and kurtosis of 2.58. However, we advise investors to further study Adagene technical indicators to ensure that all market info is available and is reliable. Adagene is a potential penny stock. Although Adagene may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Adagene. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Adagene instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Adagene Fundamentals Vs Peers

Comparing Adagene's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Adagene's direct or indirect competition across all of the common fundamentals between Adagene and the related equities. This way, we can detect undervalued stocks with similar characteristics as Adagene or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Adagene's fundamental indicators could also be used in its relative valuation, which is a method of valuing Adagene by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Adagene to competition
FundamentalsAdagenePeer Average
Return On Equity(0.56) %(0.31) %
Return On Asset(0.26) %(0.14) %
Operating Margin(6.51) %(5.51) %
Current Valuation(101.54 M)16.62 B
Shares Outstanding43.42 M571.82 M
Shares Owned by Insiders10.69 %10.09 %
Shares Owned by Institutions13.60 %39.21 %
Number of Shares Shorted111.4 K4.71 M
Price to Book0.40 X9.51 X
Price to Sales3.83 X11.42 X
Revenue10.18 M9.43 B
Gross Profit10.18 M27.38 B
EBITDA(69.99 M)3.9 B
Net Income(73.18 M)570.98 M
Cash and Equivalents168.04 M2.7 B
Cash per Share3.87 X5.01 X
Total Debt2.99 M5.32 B
Debt to Equity0.15 %48.70 %
Current Ratio3.10 X2.16 X
Book Value Per Share2.60 X1.93 K
Cash Flow from Operations(43.41 M)971.22 M
Short Ratio1.05 X4.00 X
Earnings Per Share(1.83) X3.12 X
Target Price13.83
Number of Employees25918.84 K
Market Capitalization48.85 M19.03 B
Total Asset189.51 M29.47 B
Z Score1.28.72
Net Asset189.51 M

Adagene Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Adagene . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Adagene Buy or Sell Advice

When is the right time to buy or sell Adagene? Buying financial instruments such as Adagene Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Adagene in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Processed Foods Thematic Idea Now

Processed Foods
Processed Foods Theme
Companies producing and distributing processed foods to retail sectors. The Processed Foods theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Processed Foods Theme or any other thematic opportunities.
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Please continue to Adagene Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Adagene information on this page should be used as a complementary analysis to other Adagene's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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Is Adagene's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Adagene. If investors know Adagene will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Adagene listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
48.9 M
Quarterly Revenue Growth YOY
1.887
Return On Assets
(0.26) 
Return On Equity
(0.56) 
The market value of Adagene is measured differently than its book value, which is the value of Adagene that is recorded on the company's balance sheet. Investors also form their own opinion of Adagene's value that differs from its market value or its book value, called intrinsic value, which is Adagene's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Adagene's market value can be influenced by many factors that don't directly affect Adagene's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Adagene's value and its price as these two are different measures arrived at by different means. Investors typically determine Adagene value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Adagene's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.