Wrap Technologies (NASDAQ: WRAP) is currently trading at $1.41, which is just above its 52-week low of $1.21, suggesting a potential rebound opportunity. With a Wall Street target price of $2.50, the stock presents an intriguing upside of approximately 8.97%, especially considering its recent volatility reflected in a standard deviation of 5.56.
Main Points
Wrap Technologies currently holds a "Strong Sell" rating from analysts, with no positive recommendations. This consensus likely stems from technical analysis, which examines price movements, patterns, and trends based on historical data. The goal is to gauge market sentiment and understand how investors view Wrap's future value. Let's explore some key elements of Wrap's technical analysis to see what they reveal about the company's prospects.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Wrap Technologies. In general, sophisticated investors focus on analyzing Wrap Technologies stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Wrap Technologies's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of Wrap Technologies's intrinsic value. In addition to deriving basic predictive indicators for Wrap Technologies, many experienced traders also check how macroeconomic factors affect Wrap Technologies price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Wrap Technologies. Your research has to be compared to or analyzed against Wrap Technologies' peers to derive any actionable benefits. When done correctly, Wrap Technologies' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Wrap Technologies.
How important is Wrap Technologies's Liquidity
Wrap Technologies
financial leverage refers to using borrowed capital as a funding source to finance Wrap Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Wrap Technologies 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 Wrap Technologies' 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 Wrap Technologies' 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 Wrap Technologies's total debt and its cash.
Wrap Technologies Gross Profit
Wrap 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 Wrap 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 Wrap Technologies Gross Profit growth over the last 10 years. Please check Wrap Technologies'
gross profit and other
fundamental indicators for more details.
Closer look at Wrap Technologies Standard Deviation
Wrap Technologies has current Standard Deviation of 5.56. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.
Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility.
Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.
Standard Deviation | = | SQRT(V) |
| = | 5.56 |
Let's now compare Wrap Technologies Standard Deviation to its closest peers:
| WRAP | 5.561583139784449 |
| RCAT | 6.74 |
| AFIB | 5.32 |
| WISA | 16.7 |
| VRME | 3.86 |
In the world of investing, timing is everything, and for Wrap Technologies (NASDAQ: WRAP), the technical indicators suggest a moment of potential opportunity. Currently trading around a Day Typical Price of $1.44, the stock has seen a significant drop from its 52 Week High of $4.68, raising questions about its future. With a Current Ratio of 12.76X and total assets of $28.5 million, the company maintains a strong liquidity position despite reporting losses of $30.2 million in net income. The Wall Street target price of $2.50 implies a potential upside of nearly 8.97%, which could attract investors looking for a rebound. However, the high short ratio of 43.93X indicates that many are betting against the stock, suggesting caution is warranted before diving in..
Are Wrap Technologies technical indicators showing a come-back?
Wrap Technologies' stock has shown signs of stabilization, with its maximum drawdown decreasing to 33.26. This change suggests that the stock may be turning a corner after a period of significant ups and downs. A lower drawdown often signals better market sentiment and less risk, which could be encouraging for investors. However, the stock still experiences above-average volatility, making it essential for traders to monitor these trends closely. Understanding market volatility can help investors make informed decisions, especially during challenging bear markets when stock prices can drop sharply. As prices fall, many investors may feel compelled to adjust their portfolios, seeking safer options to protect their investments.
The Current Takeaway on Wrap Technologies Investment
While some firms under the scientific & technical instruments industry are still a bit expensive, Wrap Technologies may offer a potential longer-term growth to retail investors. The inconsistency in the assessment between current Wrap valuation and our trade advice on Wrap Technologies is due to the recent market swings and your selection of investing horizon. 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 Wrap Technologies.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of Wrap Technologies. Please refer to our
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