Cognyte Stock Buy Hold or Sell Recommendation

CGNT
 Stock
  

USD 4.08  0.04  0.99%   

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

Execute Cognyte Software Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell Cognyte SoftwareBuy Cognyte Software
Cautious 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 Cognyte Software has a Mean Deviation of 2.78, Standard Deviation of 3.83 and Variance of 14.67
We provide trade advice to complement the prevailing expert consensus on Cognyte Software. 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 Cognyte Software is not overpriced, please confirm all Cognyte Software fundamentals, including its cash per share, beta, and the relationship between the revenue and cash flow from operations . Given that Cognyte Software has a number of shares shorted of 1.52 M, we suggest you to validate Cognyte Software 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.

Cognyte Software Trading Alerts and Improvement Suggestions

Cognyte Software generated a negative expected return over the last 90 days
Cognyte Software has high historical volatility and very poor performance
Cognyte Software is unlikely to experience financial distress in the next 2 years
The company reported the previous year's revenue of 445.75 M. Net Loss for the year was (40.87 M) with profit before overhead, payroll, taxes, and interest of 342.32 M.
Cognyte Software currently holds about 106.32 M in cash with (19.31 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.58.
Over 95.0% of the company shares are held by institutions such as insurance companies
Latest headline from simplywall.st: Insiders at Cognyte Software Ltd. must be relieved they sold stock as market valuation descends to US299m - Simply Wall St

Cognyte Software current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Cognyte 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. Cognyte 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 Price9.40
Target Median Price8.00
Target High Price19.00
Recommendation Mean2.50
Number Of Analyst Opinions5
Target Low Price5.00
Average Consensus Buy
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.

Cognyte Software Returns Distribution Density

The distribution of Cognyte Software's historical returns is an attempt to chart the uncertainty of Cognyte Software's future price movements. The chart of the probability distribution of Cognyte Software stock daily returns describes the distribution of returns around its average expected value. We use Cognyte Software price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Cognyte Software returns is essential to provide solid investment advice for Cognyte Software.
Mean Return-0.11Value At Risk-6.8
Potential Upside5.35Standard Deviation3.83
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Cognyte Software 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.

Cognyte Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Cognyte Software is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cognyte Software backward and forwards among themselves. Cognyte Software's institutional investor refers to the entity that pools money to purchase Cognyte Software'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
Global Alpha Capital Management LtdCommon Shares6.1 M26.1 M
Senvest Management LlcCommon Shares4.3 M18.4 M
Legal General Group PlcCommon Shares4.2 M18 M
Victory Capital Management IncCommon Shares4.2 M17.9 M
Neuberger Berman Group LlcCommon Shares3.8 M16.3 M
Edenbrook Capital LlcCommon Shares3.7 M15.5 M
William Blair Investment Management LlcCommon Shares3.1 M13.3 M
Parallax Volatility Advisers LpPut Options1.4 MM
Note, although Cognyte Software'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.

Cognyte Software 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 Cognyte Software or Cognyte Software 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 Cognyte Software'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 Cognyte 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
0.017274
β
Beta against DOW1.14
σ
Overall volatility
3.70
Ir
Information ratio 0.0001

Cognyte Software Volatility Alert

Cognyte Software exhibits very low volatility with skewness of -0.36 and kurtosis of 0.68. However, we advise investors to further study Cognyte Software technical indicators to ensure that 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 Cognyte Software'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 Cognyte Software'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.

Cognyte Software Fundamentals Vs Peers

Comparing Cognyte Software'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 Cognyte Software's direct or indirect competition across all of the common fundamentals between Cognyte Software and the related equities. This way, we can detect undervalued stocks with similar characteristics as Cognyte Software or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Cognyte Software's fundamental indicators could also be used in its relative valuation, which is a method of valuing Cognyte Software by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Cognyte Software to competition
FundamentalsCognyte SoftwarePeer Average
Return On Equity(12.99) %(0.31) %
Return On Asset(2.57) %(0.14) %
Profit Margin(9.17) %(1.27) %
Operating Margin(5.45) %(5.51) %
Current Valuation277.9 M16.62 B
Shares Outstanding67.01 M571.82 M
Shares Owned by Insiders1.76 %10.09 %
Shares Owned by Institutions95.03 %39.21 %
Number of Shares Shorted1.52 M4.71 M
Price to Earning144.29 X28.72 X
Price to Book0.93 X9.51 X
Price to Sales0.61 X11.42 X
Revenue445.75 M9.43 B
Gross Profit342.32 M27.38 B
EBITDA(9.79 M)3.9 B
Net Income(40.87 M)570.98 M
Cash and Equivalents106.32 M2.7 B
Cash per Share1.58 X5.01 X
Total Debt65.29 M5.32 B
Debt to Equity0.24 %48.70 %
Current Ratio1.29 X2.16 X
Book Value Per Share4.35 X1.93 K
Cash Flow from Operations(19.31 M)971.22 M
Short Ratio1.41 X4.00 X
Earnings Per Share0.028 X3.12 X
Price to Earnings To Growth12.83 X4.89 X
Number of Employees2 K18.84 K
Beta0.7-0.15
Market Capitalization270.72 M19.03 B
Total Asset6 M29.47 B
Retained Earnings(51.88 M)9.33 B
Working Capital3.79 M1.48 B
Current Asset5.25 M9.34 B

Cognyte Software Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Cognyte . 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 Cognyte Software Buy or Sell Advice

When is the right time to buy or sell Cognyte Software? Buying financial instruments such as Cognyte 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 Cognyte Software 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 Air Thematic Idea Now

Air
Air Theme
Companies specializing in air services and air delivery. The Air 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 Air Theme or any other thematic opportunities.
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Continue to Cognyte Software 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. You can also try Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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Is Cognyte Software'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 Cognyte Software. If investors know Cognyte 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 Cognyte Software listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Cognyte Software is measured differently than its book value, which is the value of Cognyte that is recorded on the company's balance sheet. Investors also form their own opinion of Cognyte Software's value that differs from its market value or its book value, called intrinsic value, which is Cognyte Software'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 Cognyte Software's market value can be influenced by many factors that don't directly affect Cognyte Software'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 Cognyte Software's value and its price as these two are different measures arrived at by different means. Investors typically determine Cognyte Software value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cognyte Software'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.