A Closer Look At Vroom Inc. (VRM)’s Financials

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As of Wednesday close, Vroom Inc.’s (NASDAQ:VRM) stock was up $0.11, moving up 9.09 percent to $1.26. The average number of shares traded per day over the past five days has been 5,894,220 shares. 1 time new highs have been achieved over the past 5 days, with a $0.0200 gain in that time frame. In the last twenty days, the average volume was 5,697,540, while in the previous 50 days, it was 5,391,356.

Since last month, VRM stock rose 20.00%. Shares of the company fell to $0.8250 on 11/07/22, the lowest level in the past month. A 52-week high of $16.63 was reached on 01/04/22 after having rallying from a 52-week low of $0.82. Since the beginning of this year, VRM’s stock price has dropped by -88.32% or -$9.5300, and marked a new high 2 times. However, the stock has declined by -92.42% since its 52-week high.

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VRM stock investors should be aware that Vroom Inc. (VRM) stock had its last reported insider trading activity 43 days ago on Oct 13. Zakowicz Agnieszka, the Principal Accounting Officer of the company, disposed of 160 shares for $1.11 on Oct 13. It resulted in a $177 divestment by the insider. Zakowicz Agnieszka sold 812 shares at an average price of $1.70 on Sep 14. The insider now owns 208,262 shares following the transaction. On Sep 14, Chief Financial Officer Krakowiak Robert R. sold 11,233 shares at $1.70 apiece. The transaction was valued at $19,101.

Financial Health

In the three months ended June 29, Vroom Inc.’s quick ratio stood at 1.30, while its current ratio was 1.90, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 1.37, and the total debt-to-equity ratio was 2.26. On the profitability front, the trailing twelve-month gross margin is 9.70% percent. In the year ended June 29, operating margins totaled -28.90%. Based on annual data, VRM earned $202.1 million in gross profit and brought in $3.18 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -17.60%. Return on equity (ROE) for the past 12 months was -127.80%.

In Vroom Inc.’s quarter-end financial report for June 29, it reported total debt of $607.79 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. VRM’s revenue fell -163.13% to $475.44 million during the quarter, while net income inched up to $340.8 million. While analysts expected Vroom Inc. to report -$0.75 quarterly earnings, the actual figure was -$0.73 per share, beating the consensus estimate by 2.70%. During the quarter, the company generated -$65.9 million in EBITDA. The liabilities of Vroom Inc. were 1.36 billion at the end of its most recent quarter ended June 29, and its total debt was $1.44 billion. The value of shareholders’ equity is $138.17 million.

Technical Picture

This quick technical analysis looks at Vroom Inc.’s (VRM) price momentum. With a historical volatility rate of 115.30%, the RSI 9-day stood at 61.30% on 23 November.

With respect to its five-day moving average, the current Vroom Inc. price is up by +1.61% percent or $0.0200. At present, VRM shares trade +18.87% above its 20-day simple moving average and -11.89% percent below its 100-day simple moving average. However, the stock is currently trading approximately -29.61% below its SMA50 and -82.62% below its SMA200.

Stochastic coefficient K was 67.26% and Stochastic coefficient D was 71.68%, while ATR was 0.1394. Given the Stochastic reading of 76.99% for the 14-day period, the RSI (14) reading has been calculated as 57.48%. As of today, the MACD Oscillator reading stands at 0.0111, while the 14-day reading stands at 0.1059.

Analyst Ratings

Vroom Inc. downgraded its rating on Vroom Inc. (NASDAQ: VRM) to a Neutral in a note to investors on November 22, 2022. The analysts firm previously had an Outperform rating on the stock.

With a median target price of $1.55, the current consensus forecast for the stock is $1.00 – $2.00. Based on these forecasts, analysts predict Vroom Inc. (VRM) will achieve an average price target of $1.53.


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