Hot Stock on Spotlight: Australian Ethical Investment Ltd (ASX:AEF)

Australian Ethical Investment Ltd (ASX:AEF) belong to Asset Management & Custody Banks Industry and part of Finance sector. It has a market capitalization of 302.86M. Using market capitalization to display company size because this is basic factor of different characteristics to develop the investors’ interests including risk. This company traded 128444 shares on hands in most recent trading session and observed an average volume with 251.425k shares. Australian Ethical Investment Ltd disclosed a change of +1.44% and its listed share value at AUD$4.22 in the recent trade transaction.

TECHNICAL INTERPRETATION:

A Simple moving average is one of the most flexible as well as most-commonly used technical analysis indicators. It is highly popular among traders, mostly because of its simplicity. It works best in a trending environment. Simple Moving Average calculated as an average of the last N-periods (50-Day, 200-Day). The share price is trading 50 days moving average with AUD$3 +22.99%. The stock price is performing 200 days moving average with AUD$4 +10.15%. Any type of moving average can be used to generate buy or sell signals and this process is very simple. The charting software plots the moving average as a line directly into the price chart.

PERFORMANCE REVIEW:

Australian Ethical Investment Ltd revealed weekly performance of 17.22% and shown yearly performance of 90.09%. The stock moved to 744.00% over five years and it maintained for the month at 40.20%. The stock noted performance -20.53% over the last three months. The stock’s price situated at AUD$6 +40.52% with 52 week high and stock 52 week low price seen at AUD$2 -59.95% when looking at 52 week period.

Currently Relative Strength Index (RSI-14) reading of stock is 63.82. RSI reading varies between 0 and 100. Speed and change of stock price movement is measured by the RSI momentum oscillator. J. Welles Wilder developed Relative Strength Index (RSI) that is used most commonly as momentum indicator. Commonly when RSI goes below 30 then stock is overload and stock is overbought when it goes above 70. 30 to 70 are considered a normal reading of a stock. General trend, finding deviations and failure swings can be detected by using RSI.

VOLATILITY ANALYSIS:

Market risk that established with market trade and it is measured by beta factor. Beta indicator lies at 0.52. Risk is measured on the beta factor, if beta is higher than 1 then risk is higher and if beta is lower than 1, then risk will be low. Volatility or average true range percent (ATRP 14) value stands at 6.90%. Average true range percent (ATRP) measures volatility on a relative level. This is opposed to the ATR, which measures volatility on an absolute level. ATRP allows securities to be compared whereas ATR does not. That means lower-priced stocks won’t necessarily have lower ATR values than higher-priced stocks.

PROFITABILITY SNAP:

Net profit margin of the company is 16.13% that shows the company earning by every dollar of sales. Gross margin is detected at 85.16% and Operating Margin is noted at 26.23%. Return on Assets (ROA) shows that the company is profitable as compared to its total assets which is 29.03%. Return on Equity (ROE) is 46.63%.