The stock of BM Technologies currently has an average rating of "Hold" from two analysts. But what drives this consensus? Analysts often consider technical analysis, which involves examining price momentum, patterns, and trends based on historical data. This approach seeks to gauge market sentiment and predict future price movements. Let's delve into some key elements of BM Technologies' technical analysis.
Key Takeaways
When considering an investment in BM Technologies (BMTX) from a technical perspective, it's important to note that the stock is currently trading near its 52-week high of
4.87. This suggests a potential resistance level that could impact future price movements. Additionally, the 200-day moving average stands at 2.66, indicating that the stock has been on an upward trend, which might appeal to momentum traders. However, with a net income loss of
17.3M, investors should weigh the technical indicators against the company's financial health before making a decision.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Bm Technologies. In general, sophisticated investors focus on analyzing Bm Technologies stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Bm 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 Bm Technologies's intrinsic value. In addition to deriving basic predictive indicators for Bm Technologies, many experienced traders also check how macroeconomic factors affect Bm Technologies price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Bm Technologies' 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.
How important is Bm Technologies's Liquidity
Bm Technologies
financial leverage refers to using borrowed capital as a funding source to finance Bm Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bm 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 Bm 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 Bm 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 Bm Technologies's total debt and its cash.
Bm Technologies Gross Profit
Bm 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 Bm 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 Bm Technologies Gross Profit growth over the last 10 years. Please check Bm Technologies'
gross profit and other
fundamental indicators for more details.
Closer look at Bm Technologies Variance
Bm Technologies has current Variance of 73.83. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.
Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.
Variance | = | SUM(RET DEV)2N |
| = | 73.83 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Let's now compare Bm Technologies Variance to its closest peers:
| BMTX | 73.8295036194171 |
| U | 14.57 |
| DJCO | 8.14 |
| AI | 7.89 |
| BL | 2.88 |
As Warren Buffett once noted, "Price is what you pay. Value is what you get." This wisdom is particularly relevant when considering an investment in BM Technologies (BMTX). The stock is currently trading near its 52-week high of $4.87, suggesting potential resistance at this level. However, with a 50-day moving average of $3.74 and a 200-day moving average of $2.66, the stock has shown a strong upward trend, indicating positive momentum. Additionally, with a current ratio of 1.79X and no debt to equity, BMTX appears to be in a stable financial position, which could appeal to investors looking for a balance of growth and security..
Momentum Analysis of Bm Technologies suggests possible reversal in December
BM Technologies is currently experiencing a volatility of 73.83, indicating notable fluctuations in its stock price. Such volatility often signals a potential shift in market sentiment, so investors should monitor for any changes. As December approaches, momentum analysis suggests a possible trend reversal, which could offer trading opportunities. It's a prudent moment to review your positions and consider how this volatility might impact future price movements.
As of November 17, 2024, BM Technologies has a Coefficient of Variation of 753.87, a standard deviation of 8.59, and a Market Risk Adjusted Performance of -2.36. The company's technical analysis provides a framework for using historical data patterns to predict future price directions.Considering BMTX's steady rise even as the broader market faces challenges, it presents an intriguing opportunity for investors seeking stability in a volatile environment. The stock's current market value of
4.77 suggests room for growth, especially when juxtaposed with the analyst's highest estimated target price of 7.49. However, with an overall consensus to hold, it's clear that while there is potential upside, investors should remain cautious and weigh their risk tolerance. As always, keeping an eye on market trends and company developments will be crucial for those considering adding BMTX to their portfolio..
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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