Should I short my Altimmune holdings?

The firm current daily volatility is 7.27 percent, with a beta of 0.7 and an alpha of 2.11 over DOW. Altimmune follows the market closely. Altimmune shows a prevailing Real Value of $13.14 per share. The current price of the firm is $17.03. At this time, the firm appears to be overvalued. Our model approximates the value of Altimmune from analyzing the firm fundamentals such as operating margin of (454.94) %, return on equity of (44.08) %, and shares outstanding of 21.61 M as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Published over a year ago
View all stories for Altimmune | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Raphi Shpitalnik

Altimmune has 1.68 M in debt with debt to equity (D/E) ratio of 0.04, which may show that the stock is not taking advantage of profits from borrowing. This firm has 1.68 M in debt with debt to equity (D/E) ratio of 0.04, which may show that Altimmune is not taking advantage of profits from borrowing. The company has a current ratio of 6.43, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. The entity's average rating is Strong Buy from 1 analysts.
Altimmune financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Altimmune, including all of Altimmune's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Altimmune assets, the company is considered highly leveraged. Understanding the composition and structure of overall Altimmune debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Altimmune Total Liabilities

Altimmune liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Altimmune has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Altimmune balance sheet include debt obligations and money owed to different Altimmune vendors, workers, and loan providers. Below is the chart of Altimmune short long-term liabilities accounts currently reported on its balance sheet.
You can use Altimmune financial leverage analysis tool to get a better grip on understanding its financial position

How important is Altimmune's Liquidity

Altimmune financial leverage refers to using borrowed capital as a funding source to finance Altimmune ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Altimmune 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. Financial leverage can amplify the potential profits to Altimmune's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Altimmune's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Altimmune's total debt and its cash.

An Additional Perspective On Altimmune

Altimmune makes 5 m working capital. The latest price spikes of Altimmune could raise concerns from investors as the firm closed today at a share price of 11.33 on 16,487,012 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.27. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Altimmune partners.

Asset Breakdown

48.31 Million
Total Assets
33.68 Million
Current Assets
14.63 Million
Assets Non Current
12.83 Million
Goodwill
Altimmune Revenue Per Employee is comparatively stable at the moment. Altimmune Average Assets is comparatively stable at the moment. Furthermore, Altimmune Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The newest value of Altimmune Earnings Before Interest Taxes and Depreciation Amortization EBITDA is -21,782,940.

Over 3 percent advance for Altimmune today. What does it mean for private investors?

Newest semi deviation is at 3.35. Altimmune is displaying above-average volatility of 7.27 over the selected time horizon. Investors should scrutinize Altimmune independently to ensure intended market timing strategies are aligned with expectations about Altimmune volatility.

Our Conclusion on Altimmune

Whereas other companies under biotechnology industry are still a bit expensive, Altimmune may offer a potential longer-term growth to private investors. In closing, as of 8th of July 2020, our analysis shows that Altimmune follows the market closely. The firm is overvalued and projects low probability of distress for the next 2 years. Our ongoing 30 days buy-or-sell advice on the firm is Strong Hold. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither buy new shares of Altimmune nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Altimmune.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

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 Vlad Skutelnik do not own shares of Altimmune. 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