The Stock Of The Week: Vroom Inc. (VRM)


As of Friday close, Vroom Inc.’s (NASDAQ:VRM) stock was up $0.06, moving up 7.31 percent to $0.92. The average number of shares traded per day over the past five days has been 2,822,460 shares. 2 times new highs have been achieved over the past 5 days, with a $0.0711 gain in that time frame. In the last twenty days, the average volume was 2,657,600, while in the previous 50 days, it was 4,079,344.

Since last month, VRM stock retreated -25.62%. Shares of the company fell to $0.7804 on 03/15/23, the lowest level in the past month. A 52-week high of $3.40 was reached on 02/02/23 after having rallying from a 52-week low of $0.78. Since the beginning of this year, VRM’s stock price has dropped by -9.58% or -$0.0977, and marked a new high 8 times. However, the stock has declined by -72.87% since its 52-week high.

From Robots to Self-Driving Cars: 5 AI Stocks to Consider for Your Portfolio

The artificial intelligence (AI) revolution is already here and it's about to change everything we know about everything. With the global market for AI projected to grow from $137 billion in 2022 to over $1.81 trillion by 2030, there's never been a better time to invest in this burgeoning industry. That's why we've compiled a list of the Top 5 AI Stocks to Buy for 2023. These companies are at the forefront of the AI revolution, and have the potential to deliver huge returns to investors like you.

Get our free report, "Top 5 AI Stocks to Buy for 2023".


VRM stock investors should be aware that Vroom Inc. (VRM) stock had its last reported insider trading activity 4 days ago on Mar 14. Zakowicz Agnieszka, the Principal Accounting Officer of the company, disposed of 360 shares for $0.80 on Mar 14. It resulted in a $289 divestment by the insider. Zakowicz Agnieszka sold 4,809 shares at an average price of $0.92 on Mar 06. The insider now owns 203,293 shares following the transaction. On Mar 06, CLO & Secretary Moran Patricia sold 1,038 shares at $0.92 apiece. The transaction was valued at $956.

Financial Health

In the three months ended December 30, Vroom Inc.’s quick ratio stood at 1.30, while its current ratio was 1.70, 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 December 30 was 0.85, and the total debt-to-equity ratio was 1.53. On the profitability front, the trailing twelve-month gross margin is 12.60% percent. In the year ended December 30, operating margins totaled -20.90%. Based on annual data, VRM earned $244.79 million in gross profit and brought in $1.95 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 -32.20%. Return on equity (ROE) for the past 12 months was -89.30%.

In Vroom Inc.’s quarter-end financial report for December 30, it reported total debt of $402.15 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 -347.36% to $340.8 million during the quarter, while net income inched up to $208.89 million. While analysts expected Vroom Inc. to report -$0.69 quarterly earnings, the actual figure was -$0.61 per share, beating the consensus estimate by 11.60%. During the quarter, the company generated -$74.72 million in EBITDA. The liabilities of Vroom Inc. were 1.14 billion at the end of its most recent quarter ended December 30, and its total debt was $985.76 million. The value of shareholders’ equity is $138.54 million.

Technical Picture

This quick technical analysis looks at Vroom Inc.’s (VRM) price momentum. With a historical volatility rate of 64.89%, the RSI 9-day stood at 48.92% on 17 March.

With respect to its five-day moving average, the current Vroom Inc. price is up by +8.35% percent or $0.0711. At present, VRM shares trade -16.91% below its 20-day simple moving average and -9.58% percent below its 100-day simple moving average. However, the stock is currently trading approximately -13.80% below its SMA50 and -35.50% below its SMA200.

Stochastic coefficient K was 31.78% and Stochastic coefficient D was 19.27%, while ATR was 0.0749. Given the Stochastic reading of 50.75% for the 14-day period, the RSI (14) reading has been calculated as 45.89%.

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.Vroom Inc. (VRM) has been rated Hold by analysts. According to 0 brokerage firms, VRM is a sell, and 7 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Vroom Inc. stock as buy, with 0 recommending it as overweight.

With a median target price of $1.00, the current consensus forecast for the stock is $1.00 – $1.30. Based on these forecasts, analysts predict Vroom Inc. (VRM) will achieve an average price target of $1.12.


Please enter your comment!
Please enter your name here