(STXK) EA Series Trust - Ratings and Ratios

The EA Series Trust (NASDAQ:STXK) is an exchange-traded fund (ETF) designed to provide exposure to U.S. small-cap equity securities. Under normal market conditions, the fund allocates at least 80% of its net assets (plus any borrowings for investment purposes) to U.S. small-cap stocks. These securities are typically issued by companies with market capitalizations that fall within the small-cap range, offering investors access to a segment of the market that may exhibit higher growth potential compared to larger-cap equities.

The fund tracks a free float-adjusted, capitalization-weighted index composed primarily of U.S. equity securities. This index methodology ensures that the funds holdings are representative of the small-cap market, with weights assigned based on market capitalization and adjusted for the proportion of shares available for public trading. This approach aims to deliver a portfolio that closely mirrors the performance of the underlying index, providing diversification across various industries and sectors within the small-cap universe.

From a technical perspective, the funds recent price action suggests a short-term downtrend, as the SMA 20 and SMA 50 are above the current price of 29.72. The SMA 200, at 30.83, indicates that the fund is trading below its long-term average, which may signal near-term weakness. However, the ATR of 0.44 reflects relatively low volatility, suggesting that price movements are contained, which could appeal to risk-averse investors. The average daily volume of 11,460 shares indicates moderate liquidity, which may impact execution for larger trades.

From a fundamental perspective, the funds assets under management (AUM) of $59.60 million are modest compared to larger ETFs, which may result in lower trading volumes and potentially higher spreads. However, this smaller size could also allow for greater agility in navigating the small-cap market. The funds focus on U.S. small-cap equities positions it to benefit from domestic economic growth and innovation, particularly in sectors with strong fundamentals and growth potential.