Most rational investors perceive market volatility as an opportunity to purchase at favorable prices or sell short against a negative trend. Ferrellgas Partners investment highlights automatically generate signals that complement or contradict your investment judgment. By understanding these highlights, you might be able to avoid costly errors and better understand what you are entering.
Ferrellgas Partners LP FGPR Stock trades through an over-the-counter OTC dealer network. With a market value of $249.12 million, the company is classified as a “small-cap.” Market value for Ferrellgas Partners is calculated by multiplying its total number of issued shares by its current market price.
Investors often construct a diversified portfolio of securities with varying market capitalizations to mitigate market risk and economic unpredictability. Ferrellgas Partners operates within the Energy industry and the Oil & Gas Refining & Marketing market, and cautious investors prefer large-cap companies. In contrast, risk-seeking investors prefer small- and mid-cap companies.
Today, the company has 4.86 million shares outstanding, of which individual and institutional investors are short 76.94 thousand. Currently, Ferrellgas Partners L.P. has cash of 147.53 million and a positive cash flow of 160.47 million. As a result, the company has a cash-per-share (CPS) ratio of 30.37, which might make it a good acquisition target if it continues to generate positive cash flow.
Its market capitalization is $249.12 million. Insiders own a large share of Ferrellgas Partners L.P. shares. Insiders are CEOs, other business officers, directors, or institutional investors who own at least 10 percent of the company’s shares. The insiders possess a substantial proportion of the company’s stock, so it is prudent to look at whether they have purchased or sold shares recently.
Even corporations with a lucrative outlook could produce negative stock returns. If the firm’s actual worth is less than its present market value, you won’t be able to earn good returns in the long run.
FGPR Stock Assessment
Based on a normal probability distribution, Ferrellgas Partners has a less than 95% chance of exceeding the current price within 90 days. In a time horizon of 90 days, the probability density function of Ferrellgas Partners L.P. indicates the likelihood of a pink sheet price falling within a specific range. For Ferrellgas Partners, the beta is 0.5145.
A decrease in Ferrellgas Partners’ average returns is often anticipated when market returns improve. During a lousy market, owning Ferrellgas Partners L.P. is expected to result in a much smaller loss. Further, the corporation has a negative alpha, which indicates the risk involved in owning this instrument is not justified. It underperforms the NYSE Composite by a substantial amount.
An overview of partners’ risk profiles
Investors will always want the maximum potential return on their investments with the least volatility. A market risk premium is an extra return an investor receives when they hold a long position in Ferrellgas Partners as part of a diversified portfolio. To determine the acceptable rate of return on Ferrellgas Partners investments, investors and analysts use the Capital Asset Pricing Model (CAPM).
The idea of risk and reward is central to the CAPM, which is often expressed by investors using alpha and beta metrics. As well as alpha and beta, volatility measures play a crucial role in analyzing Ferrellgas Partners’ performance compared to the market.