Arena Stock Buy Hold or Sell Recommendation

AREN
 Stock
  

USD 13.85  0.17  1.21%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding The Arena Group is 'Strong Buy'. Macroaxis provides Arena buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Arena positions. The advice algorithm takes into account all of Arena's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Arena's buy-and-hold perspective. Please continue to Arena 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 Arena and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards The Arena Group.

Execute Arena Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell ArenaBuy Arena
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Not Available
Details

Reporting Quality (M-Score)

Details
For the selected time horizon The Arena Group has a Risk Adjusted Performance of 0.1735, Jensen Alpha of 0.3708, Total Risk Alpha of 0.2651, Sortino Ratio of 0.1141 and Treynor Ratio of 0.4741
Our trade advice tool can cross-verify current analyst consensus on Arena Group and to analyze the company potential to grow in the current economic cycle. To make sure Arena is not overpriced, please confirm all Arena Group fundamentals, including its shares owned by insiders, net income, short ratio, as well as the relationship between the price to sales and debt to equity . Given that Arena Group has a price to book of 6.75 X, we suggest you to validate The Arena Group market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Arena Trading Alerts and Improvement Suggestions

Arena Group has very high historical volatility over the last 90 days
The company currently holds 90.69 M in liabilities with Debt to Equity (D/E) ratio of 0.5, which is about average as compared to similar companies. Arena Group has a current ratio of 0.62, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Arena until it has trouble settling it off, either with new capital or with free cash flow. So, Arena's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Arena Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Arena to invest in growth at high rates of return. When we think about Arena's use of debt, we should always consider it together with cash and equity.
The entity reported the previous year's revenue of 241.23 M. Net Loss for the year was (76.27 M) with profit before overhead, payroll, taxes, and interest of 79.96 M.
The Arena Group currently holds about 13.3 M in cash with (21.14 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.74.
Roughly 57.0% of Arena shares are held by institutions such as insurance companies
Latest headline from news.google.com: Dell Technologies Stock Slides On Muted Demand Outlook After Solid Q3 Earnings - Henry Herald

Arena current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Arena analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Arena analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price17.00
Target Median Price17.00
Target High Price18.00
Recommendation Mean2.00
Number Of Analyst Opinions2
Target Low Price16.00
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Arena Returns Distribution Density

The distribution of Arena's historical returns is an attempt to chart the uncertainty of Arena's future price movements. The chart of the probability distribution of Arena stock daily returns describes the distribution of returns around its average expected value. We use The Arena Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Arena returns is essential to provide solid investment advice for Arena.
Mean Return0.44Value At Risk-4.33
Potential Upside5.57Standard Deviation3.69
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Arena 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.

Arena Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Arena is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading The Arena Group backward and forwards among themselves. Arena's institutional investor refers to the entity that pools money to purchase Arena's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Wells Fargo CompanyCommon Shares275K
Wells Fargo CompanyCommon Shares40.00.0
Voss Capital LlcCommon Shares166.1 K1.6 M
Vanguard Group IncCommon Shares202.4 K1.8 M
Vanguard Group IncCommon Shares148.9 K1.6 M
Ubs Group AgCommon Shares500K
Ubs Group AgCommon Shares1.2 K13 K
Note, although Arena's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Arena 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 Arena or The Arena Group 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 Arena'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 Arena 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 DOW
0.37
β
Beta against DOW0.90
σ
Overall volatility
3.70
Ir
Information ratio 0.1

Arena Volatility Alert

The Arena Group shows above-average downside volatility for the selected time horizon. We advise investors to inspect The Arena Group further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Arena future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Arena's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Arena'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.

Arena Fundamentals Vs Peers

Comparing Arena'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 Arena's direct or indirect competition across all of the common fundamentals between Arena and the related equities. This way, we can detect undervalued stocks with similar characteristics as Arena or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Arena's fundamental indicators could also be used in its relative valuation, which is a method of valuing Arena by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Arena to competition
FundamentalsArenaPeer Average
Return On Asset(22.62) %(0.14) %
Profit Margin(31.62) %(1.27) %
Operating Margin(26.83) %(5.51) %
Current Valuation340.76 M16.62 B
Shares Outstanding18.25 M571.82 M
Shares Owned by Insiders17.71 %10.09 %
Shares Owned by Institutions56.99 %39.21 %
Number of Shares Shorted455.18 K4.71 M
Price to Book6.75 X9.51 X
Price to Sales1.05 X11.42 X
Revenue241.23 M9.43 B
Gross Profit79.96 M27.38 B
EBITDA(38.87 M)3.9 B
Net Income(76.27 M)570.98 M
Cash and Equivalents13.3 M2.7 B
Cash per Share0.74 X5.01 X
Total Debt90.69 M5.32 B
Debt to Equity0.50 %48.70 %
Current Ratio0.63 X2.16 X
Book Value Per Share(2.48) X1.93 K
Cash Flow from Operations(21.14 M)971.22 M
Short Ratio16.45 X4.00 X
Earnings Per Share(6.55) X3.12 X
Number of Employees33318.84 K
Beta0.39-0.15
Market Capitalization252.69 M19.03 B
Total Asset360 K29.47 B
Retained Earnings(666 K)9.33 B
Working Capital41 K1.48 B
Current Asset62 K9.34 B
Current Liabilities21 K7.9 B
Last Dividend Paid73.7
   Exercise or conversion by Smith Douglas Baker of 3234 shares of Arena subject to Rule 16b-3 [view details]

About Arena Buy or Sell Advice

When is the right time to buy or sell The Arena Group? Buying financial instruments such as Arena 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.

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In addition to having Arena 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.

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Heavy Metals
Heavy Metals Theme
Companies involved in mining, production, and distribution of various industrial metals and minerals. The Heavy Metals 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 Heavy Metals Theme or any other thematic opportunities.
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Please continue to Arena 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 Arena Group information on this page should be used as a complementary analysis to other Arena'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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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When running Arena Group price analysis, check to measure Arena's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Arena is operating at the current time. Most of Arena's value examination focuses on studying past and present price action to predict the probability of Arena's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Arena's price. Additionally, you may evaluate how the addition of Arena to your portfolios can decrease your overall portfolio volatility.
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Is Arena'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 Arena. If investors know Arena 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 Arena listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
252.7 M
Quarterly Revenue Growth YOY
0.12
Return On Assets
(0.23) 
The market value of Arena Group is measured differently than its book value, which is the value of Arena that is recorded on the company's balance sheet. Investors also form their own opinion of Arena's value that differs from its market value or its book value, called intrinsic value, which is Arena'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 Arena's market value can be influenced by many factors that don't directly affect Arena'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 Arena's value and its price as these two are different measures arrived at by different means. Investors typically determine Arena value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arena'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.