Are Albireo (NASDAQ:ALBO) institutional investors starting to hold back?

ALBO
 Stock
  

USD 18.73  0.54  2.80%   

Albireo Pharma Total Assets Per Share are quite stable at the moment as compared to the past year. The company's current value of Total Assets Per Share is estimated at 16.06. Quick Ratio is expected to rise to 7.63 this year, although the value of Net Income Per Employee will most likely fall to (282.4 K). The basic goal of this thesis is to give institutional investors our perspective on Albireo for September. We will forecast Albireo Pharma value for institutional investors.
Published over a month ago
View all stories for Albireo Pharma | View All Stories
On a scale of 0 to 100, Albireo Pharma holds a performance score of 3. The firm shows a Beta (market volatility) of 0.8274, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Albireo's beta means in this case. As returns on the market increase, Albireo Pharma returns are expected to increase less than the market. However, during the bear market, the loss on holding Albireo Pharma will be expected to be smaller as well. Although it is important to respect Albireo Pharma historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy in foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Albireo Pharma technical indicators, you can presently evaluate if the expected return of 0.22% will be sustainable into the future. Please makes use of Albireo Pharma value at risk, daily balance of power, and the relationship between the total risk alpha and expected short fall to make a quick decision on whether Albireo Pharma price patterns will revert.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Albireo Pharma. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Albireo Pharma

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Albireo Pharma's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Albireo Pharma in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Albireo Pharma. Your research has to be compared to or analyzed against Albireo Pharma's peers to derive any actionable benefits. When done correctly, Albireo Pharma's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Albireo Pharma.

How important is Albireo Pharma's Liquidity

Albireo Pharma financial leverage refers to using borrowed capital as a funding source to finance Albireo Pharma ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Albireo Pharma 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 Albireo Pharma's total debt and its cash.

How does Albireo utilize its cash?

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

Acquisition by Alesina Susan of 16000 shares of Albireo Pharma subject to Rule 16b-3

Legal trades by Albireo Pharma 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:
Albireo insider trading alert for grant of stock options (right to buy) by Alesina Susan, the corporate stakeholder, on 10th of August 2022. This event was filed by Albireo Pharma Inc with SEC on 2022-08-10. Statement of changes in beneficial ownership - SEC Form 4 [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.

Breaking down Albireo Pharma Further

The latest bullish price patterns experienced by current Albireo Pharma shareholders could raise concerns from institutional investors as the firm is trading at a share price of 24.93 on 237,269 in volume. The company directors and management have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in July. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.51. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Albireo Pharma partners.

Returns Breakdown

Return on Investment(70.78)
Return on Assets(0.14)
Return on Equity(0.24)
Return Capital19.26
Return on Sales(0.53)

Will Albireo Pharma latest rise continue?

Market Risk Adjusted Performance just dropped to -0.27, may entail upcoming price decrease. Albireo Pharma exhibits very low volatility with skewness of -0.36 and kurtosis of 1.72. However, we advise investors to further study Albireo Pharma technical indicators to make sure 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 Albireo Pharma'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 Albireo Pharma'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.

Albireo Pharma Implied Volatility

Albireo Pharma's implied volatility exposes the market's sentiment of Albireo Pharma stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Albireo Pharma's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Albireo Pharma stock will not fluctuate a lot when Albireo Pharma's options are near their expiration.

Our Conclusion on Albireo Pharma

Whereas some firms under the biotechnology industry are still a bit expensive, Albireo Pharma may offer a potential longer-term growth to institutional investors. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Albireo as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Albireo Pharma.

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 Ellen Johnson do not own shares of Albireo Pharma. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com