Is Aspen Technology Stock a Good Investment?
Aspen Technology Investment Advice | AZPN |
- Examine Aspen Technology's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Aspen Technology's leadership team and their track record. Good management can help Aspen Technology navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Aspen Technology's business and its evolving consumer preferences.
- Compare Aspen Technology's performance and market position to its competitors. Analyze how Aspen Technology is positioned in terms of product offerings, innovation, and market share.
- Check if Aspen Technology pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Aspen Technology's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Aspen Technology stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Aspen Technology is a good investment.
Sell | Buy |
Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Inconclusive | Details |
Examine Aspen Technology Stock
Researching Aspen Technology's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 58.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.17. Some equities with similar Price to Book (P/B) outperform the market in the long run. Aspen Technology recorded a loss per share of 0.14. The entity last dividend was issued on the 16th of August 2024. The firm had 2:1 split on the 3rd of March 1997.
To determine if Aspen Technology is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Aspen Technology's research are outlined below:
| The company reported the previous year's revenue of 1.13 B. Net Loss for the year was (9.77 M) with profit before overhead, payroll, taxes, and interest of 331.87 M. | |
| Aspen Technology has a poor financial position based on the latest SEC disclosures | |
| About 58.0% of the company shares are held by company insiders | |
| Latest headline from finance.yahoo.com: 3 Dividend Stocks to Buy Now That Have Raised Their Payouts for at Least 20 Consecutive Years |
Aspen Technology Quarterly Cash And Short Term Investments |
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Aspen Technology uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Aspen Technology. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Aspen Technology's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of August 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of June 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Aspen Technology's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Aspen Technology's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2011-11-01 | 2011-09-30 | -0.08 | -0.09 | -0.01 | 12 | ||
2005-03-15 | 2004-12-31 | 0.05 | 0.04 | -0.01 | 20 | ||
2004-04-29 | 2004-03-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2004-01-22 | 2003-12-31 | 0.04 | 0.05 | 0.01 | 25 | ||
2003-08-07 | 2003-06-30 | 0.06 | 0.07 | 0.01 | 16 | ||
2000-10-24 | 2000-09-30 | 0.01 | 0.02 | 0.01 | 100 | ||
1997-10-28 | 1997-09-30 | 0.09 | 0.1 | 0.01 | 11 | ||
1996-10-24 | 1996-09-30 | 0.06 | 0.07 | 0.01 | 16 |
Aspen Technology Target Price Consensus
We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Aspen target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Aspen Technology's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 11 | Buy |
Most Aspen analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Aspen stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Aspen Technology, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationAspen Technology Target Price Projection
Aspen Technology's current and average target prices are 239.26 and 201.83, respectively. The current price of Aspen Technology is the price at which Aspen Technology is currently trading. On the other hand, Aspen Technology's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Aspen Technology Market Quote on 20th of September 2024
Target Price
Analyst Consensus On Aspen Technology Target Price
Aspen Technology Analyst Ratings
Aspen Technology's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Aspen Technology stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Aspen Technology's financials, market performance, and future outlook by experienced professionals. Aspen Technology's historical ratings below, therefore, can serve as a valuable tool for investors.Know Aspen Technology's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Aspen Technology is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Aspen Technology backward and forwards among themselves. Aspen Technology's institutional investor refers to the entity that pools money to purchase Aspen Technology's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Wellington Management Company Llp | 2024-06-30 | 526.7 K | Dimensional Fund Advisors, Inc. | 2024-06-30 | 524.6 K | Bamco Inc | 2024-06-30 | 519.5 K | Independent Franchise Partners Llp | 2024-06-30 | 499.2 K | Clearbridge Advisors, Llc | 2024-06-30 | 466.3 K | Two Creeks Capital Management, Lp | 2024-06-30 | 415.1 K | Fiera Capital Corporation | 2024-06-30 | 340.2 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 340.1 K | Ubs Asset Mgmt Americas Inc | 2024-06-30 | 300 K | Kayne Anderson Rudnick Investment Management Llc | 2024-06-30 | 4.1 M | Blackrock Inc | 2024-06-30 | 3.9 M |
Aspen Technology's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 15.13 B.Market Cap |
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Aspen Technology's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.01) | (0.01) | |
| Return On Capital Employed | (0.01) | (0.01) |
Determining Aspen Technology's profitability involves analyzing its financial statements and using various financial metrics to determine if Aspen Technology is a good buy. For example, gross profit margin measures Aspen Technology's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Aspen Technology's profitability and make more informed investment decisions.
Aspen Technology's Earnings Breakdown by Geography
Evaluate Aspen Technology's management efficiency
As of the 20th of September 2024, Return On Tangible Assets is likely to grow to -0.006. In addition to that, Return On Capital Employed is likely to drop to -0.0068. At this time, Aspen Technology's Fixed Asset Turnover is very stable compared to the past year. Aspen Technology's management efficiency ratios could be used to measure how well Aspen Technology manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 201.11 | 211.16 | |
| Tangible Book Value Per Share | 4.71 | 4.94 | |
| Enterprise Value Over EBITDA | 29.72 | 31.20 | |
| Price Book Value Ratio | 0.98 | 1.32 | |
| Enterprise Value Multiple | 29.72 | 31.20 | |
| Price Fair Value | 0.98 | 1.32 | |
| Enterprise Value | 9.6 B | 10.1 B |
The analysis of Aspen Technology's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Aspen Technology's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Aspen Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield 0.0099 | Forward Dividend Yield 0.0099 | Forward Dividend Rate 2.1 | Beta 0.754 |
Basic technical analysis of Aspen Stock
As of the 20th of September, Aspen Technology shows the Downside Deviation of 2.04, mean deviation of 1.7, and Risk Adjusted Performance of 0.1056. Aspen Technology technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Aspen Technology's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Aspen Technology insiders, such as employees or executives, is commonly permitted as long as it does not rely on Aspen Technology's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Aspen Technology insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Aspen Technology's Outstanding Corporate Bonds
Aspen Technology issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Aspen Technology uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Aspen bonds can be classified according to their maturity, which is the date when Aspen Technology has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View | |
| BNP Paribas FRN Corp BondUSF1R15XK367 | View |
Understand Aspen Technology's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Aspen Technology's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1056 | |||
| Market Risk Adjusted Performance | 0.3979 | |||
| Mean Deviation | 1.7 | |||
| Semi Deviation | 1.76 | |||
| Downside Deviation | 2.04 | |||
| Coefficient Of Variation | 821.45 | |||
| Standard Deviation | 2.77 | |||
| Variance | 7.66 | |||
| Information Ratio | 0.0765 | |||
| Jensen Alpha | 0.2299 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.1037 | |||
| Treynor Ratio | 0.3879 | |||
| Maximum Drawdown | 20.36 | |||
| Value At Risk | (3.59) | |||
| Potential Upside | 3.29 | |||
| Downside Variance | 4.17 | |||
| Semi Variance | 3.11 | |||
| Expected Short fall | (1.90) | |||
| Skewness | 2.83 | |||
| Kurtosis | 16.9 |
| Risk Adjusted Performance | 0.1056 | |||
| Market Risk Adjusted Performance | 0.3979 | |||
| Mean Deviation | 1.7 | |||
| Semi Deviation | 1.76 | |||
| Downside Deviation | 2.04 | |||
| Coefficient Of Variation | 821.45 | |||
| Standard Deviation | 2.77 | |||
| Variance | 7.66 | |||
| Information Ratio | 0.0765 | |||
| Jensen Alpha | 0.2299 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.1037 | |||
| Treynor Ratio | 0.3879 | |||
| Maximum Drawdown | 20.36 | |||
| Value At Risk | (3.59) | |||
| Potential Upside | 3.29 | |||
| Downside Variance | 4.17 | |||
| Semi Variance | 3.11 | |||
| Expected Short fall | (1.90) | |||
| Skewness | 2.83 | |||
| Kurtosis | 16.9 |
Consider Aspen Technology's intraday indicators
Aspen Technology intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Aspen Technology stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 3921.85 | |||
| Daily Balance Of Power | 0.9368 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 239.09 | |||
| Day Typical Price | 239.15 | |||
| Price Action Indicator | 1.8 | |||
| Period Momentum Indicator | 3.26 |
Aspen Technology Corporate Filings
| 11th of September 2024 Other Reports | ViewVerify | |
F4 | 5th of September 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 13th of August 2024 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
8K | 6th of August 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Aspen Stock media impact
Far too much social signal, news, headlines, and media speculation about Aspen Technology that are available to investors today. That information is available publicly through Aspen media outlets and privately through word of mouth or via Aspen internal channels. However, regardless of the origin, that massive amount of Aspen data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Aspen Technology news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Aspen Technology relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Aspen Technology's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Aspen Technology alpha.
Aspen Technology Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Aspen Technology can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Aspen Technology Historical Investor Sentiment
Investor biases related to Aspen Technology's public news can be used to forecast risks associated with an investment in Aspen. The trend in average sentiment can be used to explain how an investor holding Aspen can time the market purely based on public headlines and social activities around Aspen Technology. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Aspen Technology's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Aspen Technology and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Aspen Technology news discussions. The higher the estimate score, the more favorable the investor's outlook on Aspen Technology.
Aspen Technology Maximum Pain Price across 2024-09-20 Option Contracts
Aspen Technology's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Aspen Technology close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Aspen Technology's options.
Aspen Technology Corporate Management
| Sharon Vinci | Chief Officer | Profile | |
| Christopher Cooper | Interim Officer | Profile | |
| Willie Chan | Chief Officer | Profile | |
| Sophia Xu | Chief Officer | Profile | |
| Filipe SoaresPinto | Senior Sales | Profile | |
| Lawrence Schwartz | VP Officer | Profile | |
| Rasha Hasaneen | Chief Officer | Profile |
Already Invested in Aspen Technology?
The danger of trading Aspen Technology is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Aspen Technology is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Aspen Technology. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Aspen Technology is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Information and Resources on Investing in Aspen Stock
When determining whether Aspen Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Aspen Technology's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Aspen Technology Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Aspen Technology Stock:Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Aspen Technology. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey. To learn how to invest in Aspen Stock, please use our How to Invest in Aspen Technology guide.You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Aspen Technology. If investors know Aspen will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Aspen Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.682 | Earnings Share (0.14) | Revenue Per Share 17.697 | Quarterly Revenue Growth 0.069 | Return On Assets (0) |
The market value of Aspen Technology is measured differently than its book value, which is the value of Aspen that is recorded on the company's balance sheet. Investors also form their own opinion of Aspen Technology's value that differs from its market value or its book value, called intrinsic value, which is Aspen Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Aspen Technology's market value can be influenced by many factors that don't directly affect Aspen Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Aspen Technology's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Aspen Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aspen Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.