Galecto (USA Stocks:GLTO) volatility maybe dropping already
 | By Gabriel Shpitalnik | Macroaxis Story |
Galecto's (NASDAQ: GLTO) volatility has been notably high, with a coefficient of variation at **820.52**, but recent signs suggest this risk is beginning to ease, potentially opening up a more stable entry point. The stock's total risk alpha of **4.34** indicates some resilience, even as its standard deviation remains elevated at **48.18**, reflecting ongoing price swings in the biotech sector.
Key Takeaways
Galecto carries $61,000 in liabilities, with a debt-to-equity ratio of just 0.01, indicating minimal reliance on borrowed funds. Its impressive current ratio of 10.76 shows strong liquidity, meaning the company can comfortably meet its short-term obligations. However, when evaluating Galecto’s use of debt, it’s important to consider its cash reserves and equity position as well. The stock scores a 9 out of 100 on performance metrics, reflecting limited growth potential. Notably, Galecto has a beta of -3.08, suggesting it tends to move inversely to the broader market—likely to decline when markets rise but to outperform during downturns. To better understand its risk and return profile, review its downside variance, sortino ratio, and accumulation distribution, which provide insights into potential future performance.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Vlad Skutelnik
Volatility is often a double-edged sword—while it can signal uncertainty, it also opens doors to potential opportunities. Galecto (NASDAQ: GLTO), a biotech player in the healthcare sector, has recently shown signs of its price swings calming down. After a period marked by notable fluctuations, the stock’s recent price action suggests a possible easing of the turbulence that has kept investors on edge. With a market value around $12.7 million and an analyst consensus leaning toward a buy, the current environment might be ripe for those looking to capitalize on a stock that appears to be settling into a more stable pattern. Although the company is still navigating losses, the diminishing volatility could hint at a more predictable trajectory ahead, making it worth a closer look for investors eyeing the biotech space. Over the next 60 days, Galecto could deliver an impressive 77.69 times the market’s return. But be aware—its volatility is equally high, at 77.69 times that of the broader market. The stock offers about 0.12 of its potential return for each unit of risk taken, compared to the Dow Jones, which currently earns around 0.06 per unit of risk. While some investors are growing cautious about biotech stocks, Galecto remains a noteworthy option for those willing to accept the turbulence. We’ll keep an eye on its recent price swings to see if they hint at a potential rebound in November.Volatility is a rate at which the price of Galecto or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Galecto may increase or decrease. In other words, similar to Galecto's beta indicator, it measures the risk of Galecto and helps estimate the fluctuations that may happen in a short period of time. So if prices of Galecto fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Galecto's Liquidity
Galecto financial leverage refers to using borrowed capital as a funding source to finance Galecto ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Galecto financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Galecto's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Galecto's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Galecto's total debt and its cash.
Galecto Gross Profit
Galecto Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Galecto previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Galecto Gross Profit growth over the last 10 years. Please check Galecto's gross profit and other fundamental indicators for more details.
Galecto Volatility Drivers
Galecto unsystematic risk is unique to Galecto and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Galecto you can also buy GeoVax Labs. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Galecto important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Galecto income statement and balance sheet. Here are more details about Galecto volatility.Click cells to compare fundamentals
Detailed Perspective On Galecto
The recent price roll up of Galecto may raise some interest from investors. The stock closed today at a share price of 12.66 on very low momentum in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in November. The stock standard deviation of daily returns for 90 days investing horizon is currently 48.56. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Galecto partners.A bird in the hand is worth two in the bush, and with Galecto (NASDAQ: GLTO), recent signs suggest the stock's volatility may be easing, presenting a potential entry point. The stock's downside deviation has decreased to 9.59, indicating less risk of large losses, while its market risk-adjusted performance remains negative at -1.9. Despite a high beta of 1.39, the current price action shows a median price of 13.47 and a potential upside of 15.5, hinting at some room for growth. With a market capitalization of 16.77 million and a cash reserve of 79.03 million, Galecto's financial stability could support a cautious rebound. However, the high probability of bankruptcy at 73.61% warrants careful monitoring before making a move..
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