Venus Concept Inc. (VERO) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Venus Concept Inc. (NASDAQ: VERO) stock jumped 3.85% on Tuesday to $0.35 against a previous-day closing price of $0.34. With 0.7 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.04 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $0.3700 whereas the lowest price it dropped to was $0.3200. The 52-week range on VERO shows that it touched its highest point at $1.69 and its lowest point at $0.15 during that stretch. It currently has a 1-year price target of $2.17. Beta for the stock currently stands at 1.62.

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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 VERO was up-trending over the past week, with a rise of 10.28%, but this was up by 17.68% over a month. Three-month performance surged to 31.40% while six-month performance fell -32.54%. The stock lost -77.37% in the past year, while it has gained 9.59% so far this year. A look at the trailing 12-month EPS for VERO yields -0.56 with Next year EPS estimates of -0.32. For the next quarter, that number is -0.12. This implies an EPS growth rate of 81.90% for this year and 50.00% for next year.

Float and Shares Shorts:

At present, 64.13 million VERO shares are outstanding with a float of 63.30 million shares on hand for trading. On Oct 13, 2022, short shares totaled 0.18 million, which was 0.28% higher than short shares on Sep 14, 2022. In addition to Mr. Domenic Della Penna as the firm’s Chief Financial Officer, Mr. Soren Maor Sinay serves as its Chief Operating Officer.

Institutional Ownership:

Through their ownership of 79.21% of VERO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.10% of VERO, in contrast to 2.44% held by mutual funds. Shares owned by individuals account for 19.92%. As the largest shareholder in VERO with 9.26% of the stake, SEDCO Capital Co. holds 6,255,788 shares worth 6,255,788. A second-largest stockholder of VERO, Masters Capital Management LLC, holds 4,900,000 shares, controlling over 7.25% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in VERO, holding 1,103,028 shares or 1.63% stake. With a 1.22% stake in VERO, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 824,933 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 0.31% of VERO stock, is the second-largest Mutual Fund holder. It holds 211,571 shares valued at 67703.0. Bridgeway Ultra Small Company Mar holds 0.31% of the stake in VERO, owning 208,644 shares worth 66766.0.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VERO 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 VERO analysts setting a high price target of $4.75 and a low target of $0.75, the average target price over the next 12 months is $2.17. Based on these targets, VERO could surge 1257.14% to reach the target high and rise by 114.29% to reach the target low. Reaching the average price target will result in a growth of 520.0% 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. VERO will report FY 2022 earnings on 03/25/2024. Analysts have provided yearly estimates in a range of -$0.63 being high and -$0.65 being low. For VERO, this leads to a yearly average estimate of -$0.64. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Venus Concept Inc. surprised analysts by -$0.07 when it reported -$0.22 EPS against a consensus estimate of -$0.15. The surprise factor in the prior quarter was -$0.11. Based on analyst estimates, the high estimate for the next quarter is -$0.10 and the low estimate is -$0.13. The average estimate for the next quarter is thus -$0.12.

Summary of Insider Activity:

Insiders traded VERO stock several times over the past three months with 4 Buys and 5 Sells. In these transactions, 1,810,000 shares were bought while 257,143 shares were sold. The number of buy transactions has increased to 12 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 2,072,782 while 257,143 shares were sold.

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