What are the latest analyst consensus on Northern (USA Stocks:NTIC)?
 | By Gabriel Shpitalnik | Macroaxis Story |
Northern Technologies (NTIC) is currently under scrutiny as analysts have not recommended any buys for the stock. Despite reporting a net income of $7.2M and a revenue of $77.4M, the company's real value is estimated at $13.12, suggesting a potential overvaluation. Furthermore, the forward dividend rate stands at 0.28, which might not be attractive for income-focused investors. The market risk adjusted performance of 3.24, coupled with a high kurtosis of 3.08, indicates a potential for extreme outcomes. While the quarterly revenue growth is at 0.091, indicating some positive momentum, the possible downside price is at $9.79, suggesting potential risk. Given these factors, it may be time to consider shorting Northern Technologies. Northern Technologies is set to release its earnings report today, with the forthcoming quarterly report anticipated on July 6, 2023. Despite the apparent indifference of many baby boomers towards the chemical sector, it is prudent to consider Northern Technologies as a potential investment. We will assess why we maintain our optimism, in anticipation of a market recovery.
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Reviewed by Michael Smolkin
Investing in Northern Technologies (USA Stocks: NTIC) may not be the best move at this time. The company's stock is currently trading at $10.72, which is significantly lower than its 52-week high of $14.745. This drop in price may be indicative of potential challenges facing the company. Moreover, the mean deviation of 0.7235 suggests that the stock's returns have been volatile, which could be a red flag for risk-averse investors. The market risk adjusted performance of 3.24 also indicates that the company's returns may not adequately compensate for the level of risk taken. Additionally, the skewness of 0.68 implies that the returns are not normally distributed and are skewed to the right, indicating a higher probability of large losses. Lastly, the fact that there were 2.3K shares shorted in the prior month suggests that some investors are betting against the company. Therefore, it might be wise to consider other investment options at this time.
Detailed examination of Northern Stock
The average rating for Northern Technologies is 'Strong Buy', as provided by one analyst. Our investment recommendation tool can cross-verify the current analyst consensus on Northern Technologies and assess the company's potential for growth in the current economic cycle.What is the right price you would pay to acquire a share of Northern Technologies? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.
What is happening with Northern Technologies this year
Annual and quarterly reports issued by Northern Technologies are formal financial statements that are published yearly and quarterly and sent to Northern stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Northern Technologies often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Northern Technologies Gross Profit
Northern Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Northern Technologies 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 Northern Technologies Gross Profit growth over the last 10 years. Please check Northern Technologies' gross profit and other fundamental indicators for more details.
Breaking down the case for Northern Technologies
Northern Technologies (NTIC) is a company with a strong financial position, boasting an EBITDA of $5.2 million and cash and equivalents of $6.13 million. With a potential upside of 1.28, it appears to be a solid investment. However, investors should not overlook the high coefficient of variation of -779.62, which suggests significant volatility and risk. This is further underscored by the negative information ratio of -0.21 and a value at risk of -1.57. Despite these risks, the company has a strong ownership structure, with 18.20% of shares owned by insiders and 37.24% by institutions. This indicates a high level of confidence in the company's management and future prospects. Furthermore, with 201 employees, Northern Technologies has a substantial workforce to drive its operations and growth. The company also pays a dividend, with the last dividend paid being $0.28, which may appeal to income-focused investors. However, given the high level of risk indicated by the coefficient of variation and information ratio, caution is advised. Therefore, it might not be the right time to bet against Northern Technologies, but investors should carefully consider the associated risks.
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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 Gabriel Shpitalnik do not own shares of Northern Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.