Uxin (USA Stocks:UXIN) high volatility trend continues
 | By Gabriel Shpitalnik | Macroaxis Story |
Uxin (NASDAQ: UXIN) has been a whirlwind of price fluctuations, drawing the attention of investors looking for potential gains amidst the chaos. With a current day median price of $4.45, the stock exhibits a daily change rate of 1.84%, highlighting its dynamic nature. While analysts maintain a consensus rating of "Hold," there’s a notable divergence in price targets, with estimates ranging from a low of $2.57 to a high of $3.13. This volatility can present unique opportunities for those willing to navigate the ups and downs. As Uxin continues to operate in the competitive auto and truck dealership industry, savvy investors may find that this unpredictability could lead to advantageous trading moments. Uxin is currently expected to deliver daily returns of 2.12%, with a risk level of 13.52% over the next 90 days. As traditional traders steer clear of the specialty retail sector, it’s worth taking a closer look at Uxin to grasp its current volatility trends. We’ll assess whether the recent fluctuations in Uxin’s stock price indicate a potential rebound this October.
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Reviewed by Michael Smolkin
Uxin operates in the Specialty Retail sector and falls under the Consumer Discretionary industry. The company has a performance score of 12 out of 100. With a beta of 0.56, Uxin may offer some diversification benefits in a portfolio. This means that when the market rises, Uxin's returns are likely to increase at a slower pace. Conversely, during market downturns, losses from holding Uxin are expected to be less severe. To evaluate Uxin's potential future returns, consider using its semi-variance, along with the relationship between its Treynor ratio and daily balance of power. These metrics can provide valuable insights into the stock's performance.
Top Findings
Uxin (NASDAQ: UXIN) continues to exhibit significant volatility, with a standard deviation of 13.21, making it a noteworthy consideration for those looking to capitalize on price fluctuations. The stock has seen a maximum drawdown of 62.35, indicating substantial risk but also the potential for high rewards. Savvy investors might find the current quote of 5.2 appealing, especially given the stock's recent price momentum of 2.37.Volatility is a rate at which the price of Uxin 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 Uxin may increase or decrease. In other words, similar to Uxin's beta indicator, it measures the risk of Uxin and helps estimate the fluctuations that may happen in a short period of time. So if prices of Uxin 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 Uxin's Liquidity
Uxin financial leverage refers to using borrowed capital as a funding source to finance Uxin ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Uxin 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 Uxin'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 Uxin'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 Uxin's total debt and its cash.
Uxin Gross Profit
Uxin Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Uxin 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 Uxin Gross Profit growth over the last 10 years. Please check Uxin's gross profit and other fundamental indicators for more details.
Uxin Volatility Drivers
Uxin unsystematic risk is unique to Uxin 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 Uxin you can also buy KAR Auction Services. You can also mitigate this risk by investing in the consumer discretionary 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 Uxin 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 Uxin income statement and balance sheet. Here are more details about Uxin volatility.Click cells to compare fundamentals
Breaking down the case for Uxin
The recent price roll up of Uxin created some momentum for investors as it was traded today as low as 2.92 and as high as 5.97 per share. The company executives may have good odds in positioning the company resources to exploit market volatility in October. The stock standard deviation of daily returns for 90 days investing horizon is currently 13.52. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Uxin partners.In the world of investing, high volatility often brings both risk and opportunity. Uxin (NASDAQ: UXIN) has recently demonstrated significant fluctuations, with a coefficient of variation of 653.19, highlighting its unpredictable nature. With cash and equivalents totaling $88.19 million against a hefty total debt of $370.13 million, the company faces challenges, yet this volatility could present savvy investors with a chance to capitalize on price movements. The stock currently trades around $4.70, with a target price of $11.21, suggesting a potential upside of 19.15%. However, investors should remain cautious, as the probability of bankruptcy stands alarmingly high at 96%..
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