Macroaxis Stories

Should I trade all of Akari and Pulmatrix?

November 16, 2024  By
Timing is everything, especially when it comes to making smart investment decisions. As you consider reshaping your portfolio, Pulmatrix, a healthcare company listed on NASDAQ, might catch your eye. Despite facing a loss of 2.98 per share, the company shows potential with a market capitalization of $17.2M and a book value of 4.93. With analysts suggesting a buy, Pulmatrix could be a strategic addition for those willing to explore opportunities in the healthcare sector. While many cautious investors are steering clear of the pharmaceutical sector, it's worth taking a closer look at Pulmatrix to see how it measures up against competitors like Akari Therapeutics. Let's delve into the competitive strengths of both Pulmatrix and Akari to better understand their positions in the market.
Published few days ago
View all stories for Pulmatrix | View All Stories

Reviewed by Raphi Shpitalnik

By examining key indicators for Pulmatrix and Akari, you can assess how market fluctuations impact their stock prices and determine if combining them in your portfolio might reduce risk. Pair trading strategies could be employed by taking a long position in Akari while shorting Pulmatrix. For more insights, explore our [pair correlation module](#) on Pulmatrix and Akari. Let's dive into asset analysis. The asset utilization ratio shows how much revenue a company generates per dollar of assets. Pulmatrix's ratio stands at 21.49%, indicating it earns $0.21 for every dollar of assets. A rising asset utilization ratio implies that Pulmatrix is becoming more efficient in using its assets for daily operations.

Main Takeaways

Pulmatrix, a player in the biotechnology sector, presents an intriguing opportunity for those considering a portfolio shake-up. With a market capitalization of just 17.2M, the company is on the smaller side, which can mean higher volatility but also potential for significant gains. However, investors should be cautious, as the company's free cash flow is currently at a loss of 16.7M, indicating financial challenges that could impact its ability to sustain operations without additional funding. Balancing these factors, Pulmatrix could be a speculative play for those willing to embrace some risk in pursuit of substantial returns.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Pulmatrix or Akari is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Pulmatrix's Liquidity

Pulmatrix financial leverage refers to using borrowed capital as a funding source to finance Pulmatrix ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pulmatrix 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 Pulmatrix'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 Pulmatrix'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 Pulmatrix's total debt and its cash.

Correlation Between Pulmatrix and Akari Therapeutics PLC

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Pulmatrix together with similar or unrelated positions with a negative correlation. For example, you can also add Akari Therapeutics to your portfolio. If Akari Therapeutics is not perfectly correlated to Pulmatrix it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Pulmatrix, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Pulmatrix and Akari Therapeutics in your portfolio? Please note if you are using this as a pair-trade strategy between Pulmatrix and Akari Therapeutics, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details between PULM and AKTX for more information.

Pulmatrix Gross Profit

Pulmatrix Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Pulmatrix 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 Pulmatrix Gross Profit growth over the last 10 years. Please check Pulmatrix's gross profit and other fundamental indicators for more details.

An Additional Perspective On Pulmatrix

Total Debt Breakdown

Now, let's check Pulmatrix total debt. Based on the latest financial disclosure, Pulmatrix has a Total Debt of 8.76 M. This is 99.68% lower than that of the Pharmaceuticals sector and 97.3% lower than that of the Health Care industry. The total debt for all United States stocks is 99.84% higher than that of the company.
As for Akari Therapeutics we see total debt of 4.58 M, which is 98.59% lower than that of the Health Care
Sector
324.8 M
PULM8.76 Million2.59
Sector324.78 Million96.05
AKTX4.58 Million1.36
Diversification is the key to stability, and considering Pulmatrix for your portfolio might just be a strategic move. Despite its challenges, such as a quarterly revenue growth decline of 16% and a profit margin loss of 95%, Pulmatrix shows potential with a current ratio of 8.19X, indicating strong liquidity. With a market capitalization of $17.17 million and a book value per share of $4.93, the stock is trading at a price-to-book ratio of 1.29X, suggesting it might be undervalued. As the company navigates its financial hurdles, including an EBITDA loss of $11.1 million, investors should weigh these factors against the potential upside, particularly if Pulmatrix can capitalize on its cash reserves of $19.2 million to fuel future growth..

Are Pulmatrix technical ratios showing a recoup?

Pulmatrix's stock is showing signs of stabilization, with its mean deviation narrowing to 5.07. This suggests that the stock's price movements are becoming more predictable, hinting at a potential recovery in its technical performance. Investors might find this encouraging, as reduced volatility often signals a more stable trading environment. As the stock's fluctuations become less erratic, it could attract more interest from those seeking opportunities in a recovering market. However, Pulmatrix still exhibits above-average volatility over the selected time frame.
Understanding these volatility trends can help investors time their market moves. During bear markets, increased volatility can impact Pulmatrix's stock price, prompting investors to adjust their portfolios by exploring different financial instruments as prices decline.Pulmatrix's impressive performance today, even as the broader market faced a downturn, highlights its potential as a compelling investment opportunity. With an analyst overall consensus of "Buy" and a highest estimated target price of 11.1, the stock appears to have room for growth. While the valuation market value stands at 6.56, suggesting some market skepticism, the strong upward movement today could indicate growing investor confidence. As always, it's crucial to consider your own risk tolerance and investment strategy, but Pulmatrix's resilience in a challenging market environment certainly makes it a stock worth watching..

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

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. 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 Vlad Skutelnik do not own shares of Pulmatrix. Please refer to our Terms of Use 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 editors@macroaxis.com