Aura Biosciences has a beta of 3.2728. This suggests that as market returns increase, Aura Biosciences' returns are expected to increase more than the market, not less. Conversely, during a bear market, the potential loss from holding Aura Biosciences is expected to be larger. The beta indicator assists investors in understanding whether Aura Biosciences moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is relative to the market (i.e., selected benchmark). In other words, if Aura Biosciences deviates significantly from the market, it adds more risk to the portfolio, but it also increases the potential for higher returns.
Investing in Aura Biosciences (USA Stocks: AURA) presents a promising opportunity, with a potential upside of 9.24%
by December 2023. The biotechnology company, known for its innovative approach in treating high-need tumors in ocular and urologic oncology, has shown resilience with a 52-week high of $14.38 and a low price of $10.49. The company's beta of 0.274 indicates lower volatility compared to the market, making it a potentially safer investment in the biotech industry. Aura's Mean Deviation of 2.88 and Coefficient of Variation of 2.2K
further underscore its stability, suggesting less risk associated with the stock. However, investors should note the company's high Short Ratio of 44.71, indicating a significant number of shorted shares at 2.7M
. This could potentially lead to a short squeeze, driving the stock price higher in the short term. Despite the potential downside risk of 5.96, Aura Biosciences' promising pipeline and steady performance make it an attractive investment opportunity.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting
future values of individual securities such as Aura Biosciences. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment
and impact your forecasting results.
Predictive Modules for Aura Biosciences
Sophisticated investors, who have witnessed many market ups and downs
, frequently view the market will even out over time. This tendency of Aura Biosciences' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Aura Biosciences in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Aura Biosciences. Your research has to be compared to or analyzed against Aura Biosciences' peers to derive any actionable benefits. When done correctly, Aura Biosciences' 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 Aura Biosciences.
How important is Aura Biosciences's Liquidity
Aura Biosciences financial leverage
refers to using borrowed capital as a funding source to finance Aura Biosciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aura Biosciences 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 Aura Biosciences' 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 Aura Biosciences' 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 Aura Biosciences's total debt and its cash.
A Deeper Perspective
The modest gains experienced by current holders of Aura Biosciences could raise concerns from investors as the firm is trading at a share price of 11.98
on very low momentum in volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in October
. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.38. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Aura Biosciences partners.
|Return on Assets
|Return on Equity
Every cloud has a silver lining, and Aura Biosciences (USA Stocks:AURA) seems to be on the verge of revealing its own. Despite a challenging year marked by a 52-week low of $6.6, Aura Biosciences, a biotechnology company focusing on cancer therapies, has shown promise with its virus-like drug conjugates technology platform.
The company's substantial working capital of $186.25M
and robust current ratio of 21.97X highlight its financial health
. Moreover, Wall Street's target price for the stock stands at an encouraging $27.4, indicating a potential upside of 9.24%. The firm's risk-adjusted performance at 0.0388 and market risk-adjusted performance at 0.0672 further underscore its resilience amidst market fluctuations. However, investors should be aware of Aura's probability of bankruptcy at 24.73%. With a market capitalization of $457.6M
, Aura Biosciences represents a promising investment opportunity, anticipated to realize significant gains by December 2023. .
Our perspective of the current Aura Biosciences rise
The current total risk alpha for Aura Biosciences, which stands at 0.57, offers an intriguing perspective on the company's recent growth. This metric measures the return on investment while taking into account systematic risk, suggesting that Aura Biosciences is delivering a better-than-expected return given the level of risk
involved. This positive risk-return trade-off is a strong indicator of the company's robust financial health
and strategic direction, making it an appealing prospect for investors looking to capitalize on its upward trajectory. As of November 6th, Aura Biosciences displays a Mean Deviation of 2.88, a risk-adjusted performance of 0.0388, and a Downside Deviation of 3.84. Aura Biosciences' technical analysis
provides a methodology to utilize historical prices and volume patterns to determine a pattern that approximates the direction of the company's future prices. In other words, this information can be used to ascertain whether the company will indeed mirror its model of historical prices and volume momentum, or if the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Aura Biosciences, which can be compared to its competitors
. Please verify Aura Biosciences' value at risk, and the relationship between the Jensen Alpha and Semi Variance to determine if Aura Biosciences is priced correctly, assuming the market reflects its regular price of 11.98 per share.
Given that Aura Biosciences has a Jensen Alpha of 0.378, we recommend you to validate Aura Biosciences's current market performance to ensure the company can sustain itself in the future. In light of the recent price surge of Aura Biosciences, Inc. (USA Stocks:AURA), a careful analysis of the company's valuation metrics suggests that the current price may not be entirely justified. The company's Valuation Real Value stands at 16.02
, significantly lower than the Analyst Target Price Estimated Value of 29.333
. This discrepancy indicates a potential overvaluation of the stock. Moreover, the Naive Expected Forecast Value is only 12.49, further suggesting that the current price might be inflated. Despite the Analyst Overall Consensus being a 'Strong Buy', with 5 strong buy recommendations, the Posible Downside Price is 8.11, which could indicate a potential risk for investors. Therefore, while Aura Biosciences' work in developing therapies for high-need cancer treatments is commendable, investors should exercise caution and thoroughly evaluate the company's financials before making investment decisions. .
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
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 firstname.lastname@example.org