Should you buy Acacia Research Corporation stock? (NasdaqGS:ACTG). Let's see how it does in our automated value investing analysis system.
Based on historical returns, we believe that Acacia Research Corporation can grow its free cash at a rate of about 9%. That's positive!
(Acacia Research Corporation stock price per share)
||ACTG Fair Price
(based on intrinsic value)
|ACTG Safety Price (based on a variable margin of safety)||$7.48|
|PE Ratio versus Sector||69% lower than other Industrial Goods stocks|
|PE Ratio versus Industry||304% higher than other Unknown stocks|
|Free Cash Flow Jitter||73%|
This stock has short interest! This means that people have shorted it.
Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.
As of the latest analysis, there are 2,510,879 shares shorted. With 45,788,989 shares available for purchase and an average trading volume over the past 10 trading days of 183,928, it would take at least 13.651 days for all of the short holders to cover their shorts.
What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.
We believe that Acacia Research Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?
Even better, Acacia Research Corporation looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).
Does Acacia Research Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.
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