How risky is to double down on Collplant Biotechnologies in December?
 | By Nico Santiago | Macroaxis Story |
Collplant Biotechnologies has $3.16 million in liabilities and a Debt to Equity (D/E) ratio of 0.08, indicating it might not be leveraging borrowing opportunities effectively. With a current ratio of 15.89, the company appears to have ample liquidity to meet its financial obligations. It's important to evaluate Collplant's debt strategy in conjunction with its cash reserves and equity to get a complete picture of its financial health.
Main Points
Considering the volatility of Collplant Biotechnologies, traders might find themselves at a crossroads this December. With a standard deviation of 3.25, the stock exhibits a moderate level of price fluctuation, suggesting that while there is potential for gains, the risks are equally present. The current trading volume of 25.6K indicates a decent level of market activity, which could either amplify the stock's movement or stabilize it, depending on investor sentiment. As you weigh the decision to double down, it's crucial to balance the potential rewards against the inherent risks of such volatility.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 Vlad Skutelnik
Fortune favors the bold, but when it comes to investing in Collplant Biotechnologies, a measured approach might be wise. This NASDAQ-listed biotech company, known for its innovative tissue regeneration solutions, has seen its stock price fluctuate recently, with a Day Median Price of $4.18 and a Valuation Market Value of $4.26. While the Analyst Overall Consensus suggests a Strong Buy, with an ambitious Analyst Target Price Estimated Value of $16.92, investors should weigh these optimistic forecasts against the current Price Action Indicator of 0.15, indicating moderate volatility. As December approaches, understanding these dynamics is crucial for those considering increasing their stake in this promising yet unpredictable player in the biotechnology sector. Collplant Biotechnologies isn't currently delivering positive expected returns and carries a 3.2643% risk over the next 90 days. While some investors are concerned about the biotech sector, it's worth considering Collplant as a potential investment. The key question is whether its expected returns can justify the current volatility. Although the stock's volatility appears to be stabilizing, it could still affect its value. Our analysis suggests that Collplant is undervalued, with a real value estimate nearing $7.41 per share.Volatility is a rate at which the price of Collplant Biotechnologies or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Collplant Biotechnologies may increase or decrease. In other words, similar to Collplant's beta indicator, it measures the risk of Collplant Biotechnologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Collplant Biotechnologies fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Collplant Biotechnologies's Liquidity
Collplant Biotechnologies financial leverage refers to using borrowed capital as a funding source to finance Collplant Biotechnologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Collplant Biotechnologies 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 Collplant Biotechnologies' 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 Collplant Biotechnologies' 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 Collplant Biotechnologies's total debt and its cash.
Collplant Biotechnologies Gross Profit
Collplant Biotechnologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Collplant Biotechnologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Collplant Biotechnologies Gross Profit growth over the last 10 years. Please check Collplant Biotechnologies' gross profit and other fundamental indicators for more details.
Collplant Biotechnologies Volatility Drivers
Collplant Biotechnologies unsystematic risk is unique to Collplant Biotechnologies and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Collplant Biotechnologies you can also buy Shattuck Labs. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Collplant Biotechnologies important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Collplant Biotechnologies income statement and balance sheet. Here are more details about Collplant volatility.Click cells to compare fundamentals
What is driving Collplant Biotechnologies Investor Appetite?
Collplant Biotechnologies reported the previous year's revenue of 10.96 M. Net Loss for the year was (7.02 M) with profit before overhead, payroll, taxes, and interest of 13.64 M. Fortune favors the bold, but when it comes to Collplant Biotechnologies, investors might need to weigh their courage against the stock's volatility. With a standard deviation of 3.25, the stock exhibits significant price fluctuations, suggesting that any investment could be a rollercoaster ride. Despite a promising target price of $12.50, the company's negative return on equity of 0.62 and a high price-to-sales ratio of 70.78X indicate potential financial challenges. However, with a current ratio of 16.21X, Collplant maintains a strong liquidity position, which could buffer against short-term liabilities. As December approaches, doubling down on this biotechnology stock could be a strategic move for those willing to embrace the risk for potential long-term gains.
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