(LSAT) Two Roads Shared Trust - Ratings and Ratios

The Two Roads Shared Trust - LeaderShares AlphaFactor Tactical Focused ETF (NYSE ARCA: LSAT) is an actively managed exchange-traded fund designed to capitalize on tactical investment opportunities. The fund primarily invests in equity securities of companies with market capitalizations of at least $1 billion at the time of purchase, focusing on mid to large-cap companies. While it maintains a diversified portfolio, the fund may concentrate its investments in specific sectors, industries, or groups of industries based on market conditions and strategic opportunities. The ETF employs the AlphaFactor methodology, which utilizes a quantitative approach to identify companies with strong fundamentals and growth potential, focusing on factors such as value, momentum, and profitability.

As a tactical ETF, LSAT allows its managers to adjust the portfolios composition in response to changing market dynamics, aiming to optimize returns while managing risk. The funds investments are selected based on a rigorous evaluation process, which includes both qualitative and quantitative analysis. By leveraging the AlphaFactor strategy, the ETF seeks to outperform broader market indices while maintaining a focus on companies with strong financial health and competitive positions within their industries.

From a technical perspective, LSAT is currently trading near its key moving averages, with the 20-day, 50-day, and 200-day SMAs clustered around the $40 level. The funds average trading volume over the past 20 days has been approximately 9,389 shares, indicating moderate liquidity. The Average True Range (ATR) of 0.42 suggests relatively low volatility, with daily price movements typically fluctuating within a narrow range. The last price of $39.37 is slightly below the 20-day SMA of $40.66, signaling short-term weakness but remaining near the long-term 200-day SMA of $39.83, which may indicate support.

On the fundamental side, LSAT has assets under management (AUM) of $111.01 million, placing it in the mid-tier of ETFs in terms of size. This AUM level provides sufficient scale to maintain liquidity while allowing the fund to remain agile in its investment strategy. The funds focus on mid-cap value stocks aligns with a segment of the market that has historically offered a balance between growth and stability, particularly during periods of economic recovery or when value stocks are in favor.

Looking ahead, the next three months may see LSAT navigate a period of consolidation, with prices potentially oscillating between $39 and $41 based on the convergence of its moving averages. The funds low ATR suggests that volatility will remain contained, with daily price movements likely staying within a 1% range. If broader market conditions favor value stocks, LSATs mid-cap focus could position it for relative outperformance. However, the funds relatively low average volume may lead to occasional price gaps or limited liquidity during periods of high market volatility.