Vipshop Holdings Limited (VIPS) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Vipshop Holdings Limited (NYSE: VIPS) stock fell -4.45% on Tuesday to $14.17 against a previous-day closing price of $14.83. With 12.23 million shares changed hands, the volume of the stock remained heavier than its average volume of 5.02 million shares. During the session, the Internet Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $14.95 whereas the lowest price it dropped to was $13.92. The 52-week range on VIPS shows that it touched its highest point at $16.35 and its lowest point at $6.36 during that stretch. It currently has a 1-year price target of $16.16. Beta for the stock currently stands at 0.46.

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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 VIPS was down-trending over the past week, with a drop of -12.58%, but this was up by 0.43% over a month. Three-month performance surged to 4.42% while six-month performance rose 51.39%. The stock gained 64.00% in the past year, while it has gained 3.89% so far this year. A look at the trailing 12-month EPS for VIPS yields 1.40 with Next year EPS estimates of 1.70. For the next quarter, that number is 0.37. This implies an EPS growth rate of 45.70% for this year and 4.90% for next year. EPS is expected to grow by 13.22% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 25.90%.

Float and Shares Shorts:

At present, 625.29 million VIPS shares are outstanding with a float of 476.81 million shares on hand for trading. On Apr 27, 2023, short shares totaled 10.41 million, which was 1.85% higher than short shares on Mar 30, 2023. In addition to Mr. Ya Shen as the firm’s Co-Founder, Chairman & CEO, Mr. Xiaobo Hong serves as its Co-Founder, Vice Chairman & COO.

Institutional Ownership:

Through their ownership of 76.64% of VIPS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 37.68% of VIPS, in contrast to 35.48% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in VIPS with 3.74% of the stake, HHLR Advisors Ltd. holds 18,989,100 shares worth 18,989,100. A second-largest stockholder of VIPS, Harris Associates LP, holds 18,990,366 shares, controlling over 3.74% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in VIPS, holding 15,040,702 shares or 2.96% stake. With a 2.47% stake in VIPS, the KraneShares CSI China Internet ET is the largest stakeholder. A total of 12,541,943 shares are owned by the mutual fund manager. The Oakmark International Fund, which owns about 1.93% of VIPS stock, is the second-largest Mutual Fund holder. It holds 9,800,554 shares valued at 153.87 million. Government Pension Fund – Global holds 1.34% of the stake in VIPS, owning 6,818,921 shares worth 107.06 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 Dec 30, 2022, VIPS reported revenue of $24.54B and operating income of $1.27B. The EBITDA in the recently reported quarter was $1.46B and diluted EPS was $1.97.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VIPS since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With VIPS analysts setting a high price target of $133.95 and a low target of $96.39, the average target price over the next 12 months is $117.09. Based on these targets, VIPS could surge 845.31% to reach the target high and rise by 580.24% to reach the target low. Reaching the average price target will result in a growth of 726.32% 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.

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