Taking on analysts’ expectations and winning: Verb Technology Company Inc. (VERB)

Verb Technology Company Inc. (NASDAQ: VERB) stock fell -2.26% on Friday to $0.54 against a previous-day closing price of $0.55. With 1.0 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.43 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $0.5800 whereas the lowest price it dropped to was $0.5268. The 52-week range on VERB shows that it touched its highest point at $2.34 and its lowest point at $0.29 during that stretch. It currently has a 1-year price target of $2.92. Beta for the stock currently stands at 0.82.

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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 VERB was down-trending over the past week, with a drop of -10.12%, but this was down by -3.32% over a month. Three-month performance surged to 6.18% while six-month performance fell -62.76%. The stock lost -74.83% in the past year, while it has lost -56.76% so far this year. A look at the trailing 12-month EPS for VERB yields -0.49 with Next year EPS estimates of -0.11. For the next quarter, that number is -0.06. This implies an EPS growth rate of 31.50% for this year and 56.00% for next year.

Float and Shares Shorts:

On Jul 14, 2022, short shares totaled 3.83 million, which was 3.78% higher than short shares on Jun 14, 2022. In addition to Mr. Rory J. Cutaia as the firm’s Founder, Chairman, Pres, CEO & Sec., Mr. Salman Khan serves as its CFO & Treasurer.

Institutional Ownership:

Through their ownership of 5.96% of VERB’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 9.76% of VERB, in contrast to 4.74% held by mutual funds. Shares owned by individuals account for 1.20%. As the largest shareholder in VERB with 2.57% of the stake, The Vanguard Group, Inc. holds 2,601,585 shares worth 2,601,585. A second-largest stockholder of VERB, BlackRock Fund Advisors, holds 1,252,225 shares, controlling over 1.23% of the firm’s shares. Geode Capital Management LLC is the third largest shareholder in VERB, holding 581,634 shares or 0.57% stake. With a 3.15% stake in VERB, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,198,586 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 0.72% of VERB stock, is the second-largest Mutual Fund holder. It holds 727,515 shares valued at 0.38 million. Fidelity Extended Market Index Fu holds 0.35% of the stake in VERB, owning 352,790 shares worth 0.18 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, VERB reported revenue of $2.69M and operating income of -$7.31M. Over the past year, revenue came in at $10.69M while operating income stood at -$31.69M. It generated -$6.99M net income for the quarter, which came to -$33.13M over the last twelve months. The EBITDA in the recently reported quarter was -$7.08M and diluted EPS was -$0.09. EBITDA for the full year was -$29.60M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VERB 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 VERB analysts setting a high price target of $4.50 and a low target of $2.00, the average target price over the next 12 months is $2.92. Based on these targets, VERB could surge 733.33% to reach the target high and rise by 270.37% to reach the target low. Reaching the average price target will result in a growth of 440.74% 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. VERB will report FY 2022 earnings on 03/30/2023. Analysts have provided yearly estimates in a range of -$0.21 being high and -$0.27 being low. For VERB, this leads to a yearly average estimate of -$0.23. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Verb Technology Company Inc. surprised analysts by -$0.03 when it reported -$0.09 EPS against a consensus estimate of -$0.06. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is -$0.07 and the low estimate is -$0.08. The average estimate for the next quarter is thus -$0.07.

Summary of Insider Activity:

Insiders traded VERB stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 189,394 shares were bought while 0 shares were sold. The number of buy transactions has increased to 12 while that of sell transactions has risen to 1 over the past year. The total number of shares bought during that period was 1,657,078 while 10,245 shares were sold.

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