Eargo Stock Story

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EAR
 Stock
  

USD 0.76  0.01  1.33%   

By Ellen Johnson
Macroaxis Story
In general, we focus on analyzing Eargo (NASDAQ:EAR) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Eargo Inc daily price indicators and compare them against related drivers. Today's article will sum up Eargo. We will evaluate why we are still confident in anticipation of a recovery.
Published over a month ago
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Eargo Inc Current Investor Sentiment

Investor biases related to Eargo's public news can be used to forecast risks associated with investment in Eargo. The trend in average sentiment can be used to explain how an investor holding Eargo can time the market purely based on public headlines and social activities around Eargo Inc. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Eargo's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Eargo's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Eargo's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Eargo.
Will Eargo Inc continue to grow in June?
The company's average rating is Sell from 3 analysts.
We provide trade advice to complement the prevailing expert consensus on Eargo Inc. 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.
The company has Net Profit Margin of (63.71) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of (56.6) %, which entails that for every $100 of revenue, it lost -0.57.
The successful prediction of Eargo stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Eargo Inc, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Eargo based on Eargo hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Eargo's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Eargo's related companies.

Watch out for price decline

Please consider monitoring Eargo on a daily basis if you are holding a position in it. Eargo is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Eargo stock to be traded above the $1 level to remain listed. If Eargo stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Use Technical Analysis to project Eargo expected Price

Eargo technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
Overlap Analysis
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Forecast Models
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Price Shifting
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Volatility Indicators
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Value Movement
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A focus of Eargo technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Eargo trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How does Eargo utilize its cash?

To perform a cash flow analysis of Eargo, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Eargo is receiving and how much cash it distributes out in a given period. The Eargo cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Eargo Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Eargo reported last year Net Cash Flow from Operations of (98.46 Million)

Breaking down Eargo Indicators

The big decline in price over the last few months for Eargo Inc could raise concerns from retail investors as the firm is trading at a share price of 1.29 on 1,423,800 in volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit market volatility in April. However, diversifying your holdings with Eargo Inc or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 8.62. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Eargo partners.

Deferred Revenue Breakdown

Eargo Deferred Revenue yearly trend continues to be relatively stable with very little volatility. Deferred Revenue is likely to grow to about 409.6 K this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Eargo Deferred Revenue is relatively stable at the moment as compared to the past year. Eargo reported last year Deferred Revenue of 357,650
2010
2019
2020
2021
2022
2010161,000
2019675,000
2020311,000
2021357,650
2022409,587

Momentum Analysis of Eargo suggests possible reversal in June

The information ratio is down to -0.19 as of today.
As of the 28th of May, Eargo shows the coefficient of variation of (524.31), and Mean Deviation of 5.89. Eargo Inc technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Eargo Inc, which can be compared to its rivals. Please confirm Eargo Inc treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if Eargo Inc is priced favorably, providing market reflects its regular price of 1.29 per share. Given that Eargo is a hitting penny stock territory we advise to closely look at its total risk alpha.

The Bottom Line

While some other companies in the medical devices industry are either recovering or due for a correction, Eargo may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor short any shares of Eargo at this time. The Eargo Inc risk-reward trade off is not appealing enough to do any trading. 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 Eargo.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile
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 Eargo Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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