Ascena Retail Group, Inc., (NASDAQ:ASNA) was trading -74.48% away from its yearly high level, during the last trading session. The last session’s volume was 2,662,888 compared to its average daily volume of 2.27M shares. The company has its outstanding shares of 180.09M. The stock after showing -5.00% change, from opening, closed at $2.09 by scoring -5.86%.
Technical Analysis in Focus:
Technical Analysis is the forecasting of future financial price movements based on an examination of past price movements. Technical indicators, collectively called “technicals”, are distinguished by the fact that they do not analyze any part of the fundamental business, like earnings, revenue and profit margins. Technical indicators are used immensely by active traders in the market, as they are intended mainly for analyzing short-term price movements. To a long-term shareholder, most technical indicators are of little value, as they do nothing to shed light on the underlying business. The most effective uses of technicals for a long-term shareholder are to assist identify good entry and exit points for the stock by analyzing the long-term trend.
This stock is ahead of its 52-week low with 26.67%. The share price has moved away from its 20 days moving average at the rate of 2.20% and its 50 days moving average returned -3.23%. The stock returned 8.29% last month which was maintained at -66.24% this year. However, weekly performance stands at -0.48%.
Where the Level Of Risk Stands For This Stock? (Beta & Volatility Analysis)
Risk management is a fundamental process used to make investment decisions. The process involves spotting the amount of risk involved and either accepting or mitigating the risk linked with an investment. Some common measures of risk are standard deviation, beta, value at risk (VaR) and conditional value at risk.
Standard deviation gauges the dispersion of data from its projected value. The standard deviation is used in making an investment decision to measure the amount of historical volatility, or risk, linked with an investment relative to its annual rate of return. It represents how much the current return is deviating from its predictable historical normal returns. For example, a stock that has a high standard deviation experiences higher volatility, and therefore, a higher level of risk is associated with the stock. After a recent check, Ascena Retail Group, Inc., (NASDAQ:ASNA)’s last month price volatility comes out to be 6.07% which for the week stands at 6.46%. Volatility is one of those things which for many retail shareholders means very little, but it’s the basis on which stocks and are traded and the sentiment in markets is also assessed. High volatility can make entering or an exiting a stock expensive, it can also exacerbate price increases and potentially profits to the upside and downside.
Another common measure of risk is Beta. Beta measures the amount of systematic risk a security has relative to the whole market. The market has a beta of 1, and it can be used to gauge the risk of a security. The Beta value of ASNA stands at 1.88. If a security’s beta is equal to 1, the security’s price moves in time step with the market. A security with a beta greater than 1 indicates that it is more volatile than the market. Conversely, if a security’s beta is less than 1, it indicates that the security is less volatile than the market. For example, suppose a security’s beta is 1.5. In theory, the security is 50% more volatile than the market.
Analysts’ Suggestions to Consider:
Analysts have a mean recommendation of 3.30 on this stock (A rating of less than 2 means buy, “hold” within the 3 range, “sell” within the 4 range, and “strong sell” within the 5 range).
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