Vimeo Inc. (NASDAQ: VMEO) stock jumped 8.70% on Monday to $4.25 against a previous-day closing price of $3.91. With 1.73 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.18 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $4.2600 whereas the lowest price it dropped to was $3.8900. The 52-week range on VMEO shows that it touched its highest point at $15.52 and its lowest point at $3.07 during that stretch. It currently has a 1-year price target of $7.80.
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 VMEO was up-trending over the past week, with a rise of 10.97%, but this was up by 17.73% over a month. Three-month performance surged to 17.40% while six-month performance fell -28.93%. The stock lost -70.81% in the past year, while it has gained 23.91% so far this year. A look at the trailing 12-month EPS for VMEO yields -0.61 with Next year EPS estimates of -0.51. For the next quarter, that number is -0.15. This implies an EPS growth rate of -3.90% for this year and 16.40% for next year.
Float and Shares Shorts:
At present, 161.53 million VMEO shares are outstanding with a float of 149.52 million shares on hand for trading. On Oct 13, 2022, short shares totaled 7.21 million, which was 4.33% higher than short shares on Sep 14, 2022. In addition to Ms. Anjali Sud as the firm’s CEO & Director, Mr. Mark Kornfilt serves as its Pres.
Through their ownership of 99.12% of VMEO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.37% of VMEO, in contrast to 40.26% held by mutual funds. Shares owned by individuals account for 2.20%. As the largest shareholder in VMEO with 8.33% of the stake, The Vanguard Group, Inc. holds 13,080,628 shares worth 13,080,628. A second-largest stockholder of VMEO, Southeastern Asset Management, In, holds 11,296,320 shares, controlling over 7.19% of the firm’s shares. Jackson Square Partners LLC is the third largest shareholder in VMEO, holding 10,979,957 shares or 6.99% stake. With a 4.11% stake in VMEO, the Longleaf Partners Small Cap Fund is the largest stakeholder. A total of 6,460,796 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.54% of VMEO stock, is the second-largest Mutual Fund holder. It holds 3,982,389 shares valued at 13.66 million. Vanguard Small Cap Index Fund holds 2.19% of the stake in VMEO, owning 3,441,103 shares worth 11.8 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VMEO since 7 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 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 VMEO analysts setting a high price target of $10.00 and a low target of $5.00, the average target price over the next 12 months is $7.25. Based on these targets, VMEO could surge 135.29% to reach the target high and rise by 17.65% to reach the target low. Reaching the average price target will result in a growth of 70.59% 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. VMEO will report FY 2022 earnings on 02/08/2024. Analysts have provided yearly estimates in a range of -$0.59 being high and -$0.62 being low. For VMEO, this leads to a yearly average estimate of -$0.61. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Vimeo Inc. surprised analysts by $0.04 when it reported -$0.13 EPS against a consensus estimate of -$0.17. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is -$0.13 and the low estimate is -$0.16. The average estimate for the next quarter is thus -$0.15.
Summary of Insider Activity:
Insiders traded VMEO stock several times over the past three months with 4 Buys and 0 Sells. In these transactions, 15,544 shares were bought while 0 shares were sold. The number of buy transactions has increased to 26 while that of sell transactions has risen to 1 over the past year. The total number of shares bought during that period was 2,494,191 while 6,769 shares were sold.