Introduction
Alteryx "AYX" is another tech software stock that has been on fire after the initial market dip from Covid-19. The company’s primary focus is enterprise-grade Analytic Process Automation (APA) platform and accomplishes this feat extremely well. I have had the opportunity to try a demo when looking for data analysis software for my organization. The software is amazing! Forget Tableau, SAS, and the others - Alteryx's platform (after the initial installation) can process “dirty data" (no data preparation) and provide business insights from the automated analysis. There is going to be a lot less “Data Scientists” and even “BI Analysts” around.
The cost of the platform runs something around $70,000. Yet from a business standpoint, it is much cheaper than adding an extra data analyst IT personnel whose value was dubious at best. I can see why this company has taken flight. I would call it the Salesforce “CRM” (Salesforce is a partner as well as Microsoft) of Business Data Analysis.The company has few large or established competitors (excluding Tableau). I would caution that until they themselves have established more dominance in the field of APA – it would not be difficult for the likes of IBM (with SPSS) to jump into the ring. However, this would seem unlikely considering IBM's struggles as of late.
AYX Performance
Note: You will come to notice I only use a few technical indicators in my analyses. I would much rather focus on the quantitative aspects that are rooted in strong mathematical theory, than try to quantify human behavior. Additionally, I have been including the acid test – Quick Ratio – to ensure that companies have enough liquidity to make it through any additional “stay-at-home” orders (hopefully we will not have any more serious outbreaks).
Fundamentals
We see that AYX has a Quick Ratio of 4.1123 and a ratio of 1.00 is considered satisfactory to meet all debt obligations. QR = (CE + MS + AR)/CL, where; CE = Cash + Equivalents, MS = Marketable Securities, AR = Accounts Receivable, and CL = Current Liabilities. The information is given in simple terms in a company’s SEC Form Q-10 Filing or the 10-K for the fiscal year.
AYX has a Price-to-Earnings Ratio that is absolutely through the roof at 2418.9831. This may be a cause for concern. Alteryx IS a tech company during a tremendous growth spurt and recent earnings have been all over the map due to Covid-19. So, we will give it the benefit of the doubt.
Technicals:
I use the Exponential Moving Averages (EMAs) as they are better indicators of what is happening “today” as they are exponentially weighted to the most recent dates of the chosen time frame.
Exponential Moving Averages
Price(Close) = 148.71
EMA(10) = 147.89
EMA(20) = 129.99
EMA(50) = 121.24
These all look good and in the correct order. The price is greater than all three (3) EMAs and there is no “cross-unders” of the EMA averages.
EMA Trend Analysis = Bullish
Linear Regression and Reversion to the Mean
The calculated Pearson’s r coefficient is almost perfectly correlated at approximately 0.9736 (A Pearson’s r coefficient of 1.00 is a perfect correlation).
We can interpret this as a Bullish trend as 1) the slope of the line is upward and 2) the price is on the lower-end of the linear regression channel (and will move toward the mean or reversion to the mean).
Linear Regression Trend Analysis = Bullish
Thanks for your time and feel free to leave any comments below!
Position: 50 shares @ 118.26 Long
Alteryx "AYX" is another tech software stock that has been on fire after the initial market dip from Covid-19. The company’s primary focus is enterprise-grade Analytic Process Automation (APA) platform and accomplishes this feat extremely well. I have had the opportunity to try a demo when looking for data analysis software for my organization. The software is amazing! Forget Tableau, SAS, and the others - Alteryx's platform (after the initial installation) can process “dirty data" (no data preparation) and provide business insights from the automated analysis. There is going to be a lot less “Data Scientists” and even “BI Analysts” around.
The cost of the platform runs something around $70,000. Yet from a business standpoint, it is much cheaper than adding an extra data analyst IT personnel whose value was dubious at best. I can see why this company has taken flight. I would call it the Salesforce “CRM” (Salesforce is a partner as well as Microsoft) of Business Data Analysis.The company has few large or established competitors (excluding Tableau). I would caution that until they themselves have established more dominance in the field of APA – it would not be difficult for the likes of IBM (with SPSS) to jump into the ring. However, this would seem unlikely considering IBM's struggles as of late.
AYX Performance
Note: You will come to notice I only use a few technical indicators in my analyses. I would much rather focus on the quantitative aspects that are rooted in strong mathematical theory, than try to quantify human behavior. Additionally, I have been including the acid test – Quick Ratio – to ensure that companies have enough liquidity to make it through any additional “stay-at-home” orders (hopefully we will not have any more serious outbreaks).
Fundamentals
We see that AYX has a Quick Ratio of 4.1123 and a ratio of 1.00 is considered satisfactory to meet all debt obligations. QR = (CE + MS + AR)/CL, where; CE = Cash + Equivalents, MS = Marketable Securities, AR = Accounts Receivable, and CL = Current Liabilities. The information is given in simple terms in a company’s SEC Form Q-10 Filing or the 10-K for the fiscal year.
AYX has a Price-to-Earnings Ratio that is absolutely through the roof at 2418.9831. This may be a cause for concern. Alteryx IS a tech company during a tremendous growth spurt and recent earnings have been all over the map due to Covid-19. So, we will give it the benefit of the doubt.
Technicals:
I use the Exponential Moving Averages (EMAs) as they are better indicators of what is happening “today” as they are exponentially weighted to the most recent dates of the chosen time frame.
Exponential Moving Averages
Price(Close) = 148.71
EMA(10) = 147.89
EMA(20) = 129.99
EMA(50) = 121.24
These all look good and in the correct order. The price is greater than all three (3) EMAs and there is no “cross-unders” of the EMA averages.
EMA Trend Analysis = Bullish
Linear Regression and Reversion to the Mean
The calculated Pearson’s r coefficient is almost perfectly correlated at approximately 0.9736 (A Pearson’s r coefficient of 1.00 is a perfect correlation).
We can interpret this as a Bullish trend as 1) the slope of the line is upward and 2) the price is on the lower-end of the linear regression channel (and will move toward the mean or reversion to the mean).
Linear Regression Trend Analysis = Bullish
Thanks for your time and feel free to leave any comments below!
Position: 50 shares @ 118.26 Long
Comment:
I tried to use lower case sigma to calculate the Pearson's r coefficient for linear regression, but TradingView told me to change the language!
Comment:
