Citi Trends Stock Story

CTRN -  USA Stock  

USD 49.88  0.04  0.08%

It seems Citi Trends may not have a good chance to recover from the latest slide as its shares fell again. The company current daily volatility is 3.38 percent, with a beta of 1.49 and an alpha of -0.05 over DOW. As some institutional investors are moving away from the latest market volatility rise, we are going to outline Citi Trends based on how it reacts to economic swings. I will address the reasons why this entity does not get much respect from institutional investors under the current market uncertainty.
Published over a month ago
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What does a latest Citi Trends volatility slide mean for institutional investors?
Citi Trends currently holds roughly 101.35 M in cash with 112.27 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 11.39.
Macroaxis provides unbiased investment recommendation on Citi Trends that should be used to complement current analysts and expert consensus on Citi Trends. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Investing in Citi Trends, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Citi Trends along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Citi Trends' 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 Citi Trends 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 Citi Trends. Your research has to be compared to or analyzed against Citi Trends' peers to derive any actionable benefits. When done correctly, Citi Trends' 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 Citi Trends.

How important is Citi Trends's Liquidity

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

How does Citi Trends utilize its cash?

To perform a cash flow analysis of Citi Trends, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Citi Trends is receiving and how much cash it distributes out in a given period. The Citi Trends cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Citi Trends Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 43.21 Million

Citi Trends Correlation with Peers

Investors in Citi Trends can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Citi Trends. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Citi Trends and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Citi Trends is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Citi Trends for more details

Payment of 455 shares by Moschner Jason of Citi Trends subject to Rule 16b-3

Legal trades by Citi Trends 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:
Citi Trends insider trading alert for payment of common stock by Moschner Jason, VP Principal AO and Secretary, on 14th of January 2022. This event was filed by Citi Trends Inc with SEC on 2022-01-14. 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.

A Deeper Perspective

Citi Trends secures Sharpe Ratio (or Efficiency) of -0.0287, which signifies that the company had -0.0287% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Citi Trends exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Citi Trends mean deviation of 2.61, and Risk Adjusted Performance of (0.010794) to double-check the risk estimate we provide.

Will Citi Trends continue to go insane?

Latest Jensen Alpha is up to -0.05. Price may slide again. Citi Trends exhibits very low volatility with skewness of -0.69 and kurtosis of 0.44. However, we advise investors to further study Citi Trends 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 Citi Trends' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Citi Trends' 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.

Citi Trends Implied Volatility

Citi Trends' implied volatility exposes the market's sentiment of Citi Trends stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Citi Trends' 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 Citi Trends stock will not fluctuate a lot when Citi Trends' options are near their expiration.

Our Final Perspective on Citi Trends

Whereas some other entities in the apparel retail industry are either recovering or due for a correction, Citi Trends may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Citi Trends 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 Citi Trends.

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 Citi Trends. Please refer to our Terms of Use for any information regarding our disclosure principles.

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