Varex Imaging Corporation (NASDAQ: VREX) stock fell -3.61% on Friday to $21.88 against a previous-day closing price of $22.70. With 1.13 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.32 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $22.60 whereas the lowest price it dropped to was $20.79. The 52-week range on VREX shows that it touched its highest point at $32.65 and its lowest point at $18.90 during that stretch. It currently has a 1-year price target of $40.33. Beta for the stock currently stands at 0.90.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of VREX was up-trending over the past week, with a rise of 0.78%, but this was up by 2.63% over a month. Three-month performance surged to 8.48% while six-month performance fell -14.73%. The stock lost -18.96% in the past year, while it has lost -30.65% so far this year. A look at the trailing 12-month EPS for VREX yields 0.71 with Next year EPS estimates of 1.57. For the next quarter, that number is 0.24. This implies an EPS growth rate of 128.90% for this year and 24.02% for next year. EPS is expected to grow by 5.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -25.10%.
Float and Shares Shorts:
At present, 39.70 million VREX shares are outstanding with a float of 39.53 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.29 million, which was 10.79% higher than short shares on Jun 14, 2022. In addition to Mr. Sunny S. Sanyal as the firm’s Pres, CEO & Director, Mr. Shubham Maheshwari serves as its CFO & Principal Accounting Officer.
Through their ownership of 120.27% of VREX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 69.28% of VREX, in contrast to 47.14% held by mutual funds. Shares owned by individuals account for 0.89%. As the largest shareholder in VREX with 15.36% of the stake, BlackRock Fund Advisors holds 6,111,295 shares worth 6,111,295. A second-largest stockholder of VREX, The Vanguard Group, Inc., holds 4,232,336 shares, controlling over 10.63% of the firm’s shares. Shapiro Capital Management LLC is the third largest shareholder in VREX, holding 3,146,292 shares or 7.91% stake. With a 7.05% stake in VREX, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 2,806,265 shares are owned by the mutual fund manager. The Janus Henderson Small Cap Value F, which owns about 5.02% of VREX stock, is the second-largest Mutual Fund holder. It holds 1,998,777 shares valued at 42.75 million. Allspring Special Small Cap Value holds 4.21% of the stake in VREX, owning 1,674,289 shares worth 35.81 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VREX since 3 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With VREX analysts setting a high price target of $47.00 and a low target of $32.00, the average target price over the next 12 months is $40.33. Based on these targets, VREX could surge 114.81% to reach the target high and rise by 46.25% to reach the target low. Reaching the average price target will result in a growth of 84.32% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. VREX will report FY 2022 earnings on 11/15/2022. Analysts have provided yearly estimates in a range of $1.29 being high and $0.68 being low. For VREX, this leads to a yearly average estimate of $1.07. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Varex Imaging Corporation surprised analysts by $0.14 when it reported $0.37 EPS against a consensus estimate of $0.23. The surprise factor in the prior quarter was $0.15. Based on analyst estimates, the high estimate for the next quarter is $0.25 and the low estimate is $0.21. The average estimate for the next quarter is thus $0.23.
Summary of Insider Activity:
Insiders traded VREX stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 5,207 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 174,724 while 109,771 shares were sold.