It is Poised to be a Bull Market for Velodyne Lidar Inc. (VLDR)

Velodyne Lidar Inc. (NASDAQ: VLDR) stock jumped 3.83% on Friday to $0.95 against a previous-day closing price of $0.91. With 1.61 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.96 million shares. During the session, the Scientific & Technical Instruments company that operates in wider Technology sector, reached to the highest price of $0.9500 whereas the lowest price it dropped to was $0.9140. The 52-week range on VLDR shows that it touched its highest point at $4.87 and its lowest point at $0.71 during that stretch. It currently has a 1-year price target of $4.29. Beta for the stock currently stands at 1.29.

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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 VLDR was down-trending over the past week, with a drop of -2.18%, but this was up by 14.27% over a month. Three-month performance surged to 6.52% while six-month performance fell -13.75%. The stock lost -74.01% in the past year, while it has gained 28.43% so far this year. A look at the trailing 12-month EPS for VLDR yields -0.85 with Next year EPS estimates of -0.46. For the next quarter, that number is -0.13. This implies an EPS growth rate of -8.10% for this year and 29.20% for next year.

Float and Shares Shorts:

At present, 213.52 million VLDR shares are outstanding with a float of 188.95 million shares on hand for trading. On Oct 13, 2022, short shares totaled 9.4 million, which was 4.26% higher than short shares on Sep 14, 2022. In addition to Dr. Theodore L. Tewksbury III, Ph.D. as the firm’s CEO & Director, Mr. James L. Barnhart serves as its Chief Operating Officer.

Institutional Ownership:

Through their ownership of 31.17% of VLDR’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 41.67% of VLDR, in contrast to 14.15% held by mutual funds. Shares owned by individuals account for 12.23%. As the largest shareholder in VLDR with 4.91% of the stake, BlackRock Fund Advisors holds 11,702,309 shares worth 11,702,309. A second-largest stockholder of VLDR, The Vanguard Group, Inc., holds 9,496,711 shares, controlling over 3.99% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in VLDR, holding 5,518,935 shares or 2.32% stake. With a 2.50% stake in VLDR, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,956,174 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 1.89% of VLDR stock, is the second-largest Mutual Fund holder. It holds 4,496,780 shares valued at 3.32 million. SPDR S&P Kensho New Economies Com holds 1.39% of the stake in VLDR, owning 3,316,189 shares worth 2.45 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VLDR since 6 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 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 VLDR analysts setting a high price target of $3.00 and a low target of $0.85, the average target price over the next 12 months is $1.50. Based on these targets, VLDR could surge 215.79% to reach the target high and fall by -10.53% to reach the target low. Reaching the average price target will result in a growth of 57.89% 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. VLDR will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of -$0.63 being high and -$0.73 being low. For VLDR, this leads to a yearly average estimate of -$0.67. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Velodyne Lidar Inc. surprised analysts by $0.08 when it reported -$0.13 EPS against a consensus estimate of -$0.21. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is -$0.11 and the low estimate is -$0.16. The average estimate for the next quarter is thus -$0.13.

Summary of Insider Activity:

Insiders traded VLDR stock several times over the past three months with 8 Buys and 11 Sells. In these transactions, 59,010 shares were bought while 207,286 shares were sold. The number of buy transactions has increased to 110 while that of sell transactions has risen to 75 over the past year. The total number of shares bought during that period was 12,535,949 while 5,847,332 shares were sold.

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