Our projection for Widepoint Corp (AMEX:WYY) in September

WYY
 Stock
  

USD 1.98  0.01  0.51%   

The goal of this article is to forecast a future value of Widepoint Corp using technical analysis. What exactly are Widepoint Corp investors should expect in September?
Published over a month ago
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Widepoint Corp has a beta of 0.867. Let's try to break down what Widepoint's beta means in this case. Widepoint Corp returns are very sensitive to returns on the market. As the market goes up or down, Widepoint Corp is expected to follow. The beta indicator helps investors understand whether Widepoint Corp moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Widepoint deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Widepoint Corp. 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 Widepoint Corp

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Widepoint Corp'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 Widepoint Corp 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 Widepoint Corp. Your research has to be compared to or analyzed against Widepoint Corp's peers to derive any actionable benefits. When done correctly, Widepoint Corp'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 Widepoint Corp.

How important is Widepoint Corp's Liquidity

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

How does Widepoint utilize its cash?

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

Widepoint Corp exotic insider transaction detected

Legal trades by Widepoint Corp 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:
Widepoint insider trading alert for general transaction of stock option (right to buy) by Dzyak Todd, COO, on 22nd of August 2022. This event was filed by Widepoint Corp with SEC on 2022-08-22. Initial filing of beneficial ownership - SEC Form 3 [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.

Details

Widepoint Corp exhibits very low volatility with skewness of 0.68 and kurtosis of 3.13. However, we advise investors to further study Widepoint Corp 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 Widepoint Corp'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 Widepoint Corp'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.

Widepoint Corp Implied Volatility

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

Will Widepoint pull back in September 2022?

Current Treynor Ratio is up to -0.03. Price may slide again.
As of the 14th of August 2022, Widepoint Corp maintains the market risk adjusted performance of (0.020532), and Mean Deviation of 2.77. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Widepoint Corp, as well as the relationship between them. Specifically, you can use this information to find out if the company will indeed mirror its model of past data patterns, or the prices will eventually revert. We have analyzed and interpolated nineteen technical drivers for Widepoint Corp, which can be compared to its rivals. Please check out Widepoint Corp standard deviation, value at risk, kurtosis, as well as the relationship between the jensen alpha and semi variance to decide if Widepoint Corp is priced fairly, providing market reflects its latest price of 2.98 per share. Please also validate Widepoint Corp total risk alpha, which is currently at (0.25) to confirm the company can sustain itself at a future point.

Our Takeaway on Widepoint Corp Investment

While many other companies under the information technology services industry are still a bit expensive, Widepoint Corp may offer a potential longer-term growth to investors. In closing, as of the 14th of August 2022, our research shows that Widepoint Corp is a rather very risky investment opportunity with a below average odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our ongoing 90 days buy-or-sell advice on the company is Cautious Hold.

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 Widepoint Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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