Will Inspira Technologies (USA Stocks:IINN) basic indicators remain unfluctuating in December?

The health care sector is a gold mine for investors who know where to dig, and Inspira Technologies could be the next big find. The company, which operates in the Medical Devices industry, has a current valuation of 7.05M and a book value of 0.63. Despite a net income loss of 10.3M and total revenue loss of 4.7M, the company's fundamentals suggest potential for growth. The price to book ratio stands at 0.82X, indicating that the stock could be undervalued. Moreover, Inspira Technologies has a strong cash position, with cash per share at 1.90X. The company has invested heavily in research and development, with expenses amounting to 8.1M, a clear indication of its commitment to innovation. With Wall Street's target price at 9.41 and an analyst's lowest estimated target price at 13, the potential upside is significant. However, investors should also consider the company's high stock-based compensation of 4.9M and other operating expenses of 14.8M. Despite these challenges, Inspira Technologies presents a promising investment opportunity for December. Currently, Inspira Technologies' Debt to Equity Ratio remains quite stable compared to the previous year. As of November 18, 2023, the Return on Average Assets is projected to increase to 0.61, while Average Assets are expected to decrease by approximately 19.4 million. If you have been monitoring Inspira Technologies, you might be aware that now may not be the most opportune time to purchase. We currently assess Inspira Technologies as undervalued, with the real value nearing $4.17 per share.
Published over two weeks ago
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Reviewed by Michael Smolkin

We offer advice to supplement the prevailing expert consensus on Inspira Technologies. Our sophisticated recommendation engine employs a multidimensional algorithm to assess the company's growth potential, using all available technical and fundamental data at the time. Inspira Technologies' dividends can offer insights into the current stock value. The company is not projected to issue dividends this year as it aims to conserve or reinvest any distributable funds for stakeholders. Investing in stocks that do not pay dividends can still present opportunities for capital appreciation. Investors in such stocks depend on the stock's price increase over time to yield returns. When the company performs well and its stock price escalates, investors can sell their shares at a higher price to realize a profit.

Major Takeaways

Inspira Technologies, a player in the Medical Devices industry, presents an interesting investment opportunity this December. The company's strong liquidity position, as indicated by a high current ratio of 10.16X and a healthy working capital of $12.43M, suggests that it can comfortably meet its short-term obligations. Furthermore, Inspira's total stockholder equity stands at $12.8M, providing a solid foundation for the company's financial health. However, potential investors should be aware of the company's negative EBITDA of $12.9M and a net income loss from continuing operations of $10.3M. These figures indicate that the company is currently not profitable. Despite these challenges, the company's low price to book ratio of 0.82X could make it an attractive buy for value investors.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Inspira Technologies income statement, its balance sheet, and the statement of cash flows. Potential Inspira Technologies investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Inspira Technologies investors may use each financial statement separately, they are all related. The changes in Inspira Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Inspira Technologies's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Inspira Technologies fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Inspira Technologies performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Inspira Technologies shares is the value that is considered the true value of the share. If the intrinsic value of Inspira is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Inspira Technologies. Please read more on our fundamental analysis page.

Watch out for price decline

Please consider monitoring Inspira Technologies on a daily basis if you are holding a position in it. Inspira Technologies is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Inspira Technologies stock to be traded above the $1 level to remain listed. If Inspira Technologies stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How effective is Inspira Technologies in utilizing its assets?

Inspira Technologies Oxy reports assets on its Balance Sheet. It represents the amount of Inspira resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Inspira Technologies aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Health Care Equipment & Supplies space. To get a better handle on how balance sheet or income statements item affect Inspira volatility, please check the breakdown of all its fundamentals.

Breaking it down a bit more

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Inspira Technologies is not uncomon. Institutional investor usually refers to an organization that invests money in Inspira Technologies on behalf of clients or other money managers. Buying and selling of large positions of Inspira Technologies stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Inspira Technologies stock. Let's take a look at how the ownership of Inspira is distributed among investors.

Ownership Allocation

The market capitalization of Inspira Technologies is $15.09 Million. Inspira Technologies secures significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note, that even with negative profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.
Retail Investors
Retail Investors73.46
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Inspira Technologies' decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Inspira Technologies' decisions due to their larger holdings.

Asset Utilization

One of the ways to look at asset utilization of Inspira is to check how much profit was generated for every dollar of assets it reports. Inspira Technologies retains a negative application of resources of -0.52 (percent), losing $0.005184 for each dollar of resources held by the firm. Inadequate asset utilization attests that the company is being less effective with each dollar of resources it retains. Simply put, asset utilization of Inspira Technologies Oxy shows how discouraging it operates for each dollar spent on its resources.
Current Assets
14.5 M
Current Assets14.54 Million91.18
Assets Non Current1.41 Million8.82
As Warren Buffet once wisely noted, risk comes from not knowing what you're doing. With this in mind, let's delve into the fundamentals of Inspira Technologies. The company's current ratio stands at a robust 10.16X, indicating a strong ability to meet short-term obligations. However, Inspira reported an EBITDA loss of $12.9 million, reflecting operational challenges. On the brighter side, the company has a healthy net working capital of $12.4 million and a relatively low short and long-term debt total of $1.5 million. The company's shares are largely held by insiders and institutions, with 25.86% owned by insiders and 68.4% by institutions, suggesting confidence in the company's prospects. However, the company's risk-adjusted performance is near zero, indicating a lack of return given the risk taken. Despite the operational losses, the Wall Street target price stands at a promising $9.41, indicating potential upside. In conclusion, Inspira Technologies presents a mixed bag of investment opportunity for December, with strong liquidity indicators but operational losses that cannot be ignored.

How will Inspira insiders react to the next decline?

The recent kurtosis of Inspira Technologies Oxy Stock is currently at 2.11, indicating a relatively normal distribution of returns with fewer extreme outliers. This suggests that the stock's performance has been relatively stable, devoid of significant unexpected fluctuations. However, in the event of a potential decline, it will be intriguing to observe how the insiders at Inspira respond. Their actions could offer valuable insights into the company's future prospects and whether they perceive the decline as a temporary setback or a sign of more systemic issues. Inspira Technologies Oxy exhibits very low volatility with a skewness of 1.19 and a kurtosis of 2.11. Nevertheless, we recommend investors to further study Inspira Technologies Oxy's technical indicators to ensure that all market information is available and reliable. Understanding different market volatility trends often assists investors in timing the market. Proper utilization of volatility indicators enables traders to measure the risk of Inspira Technologies' stock against market volatility during both bullish and bearish trends. The higher level of volatility that accompanies bear markets can directly impact Inspira Technologies' stock price while adding stress to investors as they witness their shares' value decrease. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop.

Our Bottom Line On Inspira Technologies Oxy

Although many other companies in the medical devices industry are either recovering or due for a correction, Inspira may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither trade new shares of Inspira nor quit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Inspira Technologies.

Editorial Staff

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 Ellen Johnson do not own shares of Inspira Technologies Oxy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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