It is Poised to be a Bull Market for Vroom Inc. (VRM)

Vroom Inc. (NASDAQ: VRM) stock jumped 1.67% on Friday to $0.94 against a previous-day closing price of $0.92. With 2.33 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.21 million shares. During the session, the Auto & Truck Dealerships company that operates in wider Consumer Cyclical sector, reached to the highest price of $0.9699 whereas the lowest price it dropped to was $0.9200. The 52-week range on VRM shows that it touched its highest point at $8.62 and its lowest point at $0.82 during that stretch. It currently has a 1-year price target of $2.21.

Top 5 Undervalued Stocks To Own In 2023

Microchip Maker Releases "World's Most Powerful Data Center CPU". It could allow the company who manufactures it to lead the industry as the global microchip shortage continues into the coming year. We've put together a free research report that explains all the details. Not only will you find out why analysts believe this chip manufacturer could lead the pack, you will also discover four more potential winners for the coming year.

Click here to download your Free Research Report…

Sponsored

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 VRM was down-trending over the past week, with a drop of -17.98%, but this was down by -3.79% over a month. Three-month performance dropped to -9.22% while six-month performance fell -52.05%. The stock lost -87.30% in the past year, while it has lost -8.33% so far this year. A look at the trailing 12-month EPS for VRM yields -4.40 with Next year EPS estimates of -2.27. For the next quarter, that number is -0.71. This implies an EPS growth rate of -79.70% for this year and 14.80% for next year.

Float and Shares Shorts:

At present, 138.12 million VRM shares are outstanding with a float of 132.60 million shares on hand for trading. On Oct 13, 2022, short shares totaled 28.19 million, which was 20.41% higher than short shares on Sep 14, 2022. In addition to Mr. Robert R. Krakowiak as the firm’s CFO & Treasurer, Ms. Patricia Moran J.D., Esq. serves as its Chief Legal Officer & Sec.


Institutional Ownership:

Through their ownership of 37.21% of VRM’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 6.98% of VRM, in contrast to 6.68% held by mutual funds. Shares owned by individuals account for 22.56%. As the largest shareholder in VRM with 4.49% of the stake, The Vanguard Group, Inc. holds 6,206,246 shares worth 6,206,246. A second-largest stockholder of VRM, Millennium Management LLC, holds 4,842,324 shares, controlling over 3.51% of the firm’s shares. NISA Investment Advisors LLC is the third largest shareholder in VRM, holding 3,776,968 shares or 2.73% stake. With a 3.14% stake in VRM, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,332,182 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 1.24% of VRM stock, is the second-largest Mutual Fund holder. It holds 1,719,445 shares valued at 1.75 million. Fidelity Extended Market Index Fu holds 0.48% of the stake in VRM, owning 660,377 shares worth 0.67 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VRM since 6 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 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 VRM analysts setting a high price target of $2.00 and a low target of $1.00, the average target price over the next 12 months is $1.28. Based on these targets, VRM could surge 112.77% to reach the target high and rise by 6.38% to reach the target low. Reaching the average price target will result in a growth of 36.17% 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. VRM will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of -$2.68 being high and -$4.13 being low. For VRM, this leads to a yearly average estimate of -$3.46. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Vroom Inc. surprised analysts by -$0.14 when it reported -$0.76 EPS against a consensus estimate of -$0.62. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.62 and the low estimate is -$0.77. The average estimate for the next quarter is thus -$0.69.

Summary of Insider Activity:

Insiders traded VRM stock several times over the past three months with 2 Buys and 1 Sells. In these transactions, 155,340 shares were bought while 7,204 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 8 over the past year. The total number of shares bought during that period was 3,158,208 while 62,316 shares were sold.

Leave a Comment

Your email address will not be published. Required fields are marked *