Vroom Inc. (NASDAQ:VRM) finished Friday with an addition of $0.02 to close at $1.13, an upside of 1.80 percent. An average of 2,534,120 shares of common stock have been traded in the last five days. There was a fall of -$0.0900 in the past week, and it reached a new high 5 times over the past 12 months. The last 20 days have seen an average of 4,814,070 shares traded, while the 50-day average volume stands at 7,122,650.
VRM stock has decreased by -43.92% in the last month. The company shares reached their 1-month lowest point of $1.0600 on 08/22/23. With the stock rallying to its 52-week high on 07/19/23, shares of the company touched a low of $0.73 and a high of $2.82 in 52 weeks. It has reached a new high 16 times so far this year and achieved 10.78% or $0.1100 in price. In spite of this, the price is down -59.93% from the 52-week high.
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Insider Transactions
VRM stock investors should be aware that Vroom Inc. (VRM) stock had its last reported insider trading activity 96 days ago on May 25. In this transaction, the insider spent $4,731. Principal Accounting Officer, Zakowicz Agnieszka, disposed of 360 shares at a price of $0.80 on Mar 14. The insider now owns more than $289 worth of shares. Prior to that, Principal Accounting Officer Zakowicz Agnieszka went on to Sale 4,809 shares at $0.92 each on Mar 06. An amount of $4,428 was transacted.
Valuation Metrics
Vroom Inc. (VRM) stock’s beta is 2.40. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.16, the price-to-book (PB) ratio at 0.47.
Financial Health
The quick ratio of Vroom Inc. for the three months ended June 29 was 1.00, and the current ratio was 1.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.61 and a total debt to equity ratio of 2.69 for the quarter ending June 29. Vroom Inc.’s EBITDA margin for the year ending June 29 is -17.97%, while its operating margin for the same period stands at -9.50%. Its gross profit as reported stood at $244.79 million compared to revenue of $1.95 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Vroom Inc.’s return on assets was -10.10%.
Earnings Surprise
For the three-month period that ended June 29, Vroom Inc. had $544.93 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$66.32 million in the quarter, while revenues were shrunk -73.54%. The analyst consensus anticipated Vroom Inc.’s latest quarter earnings to come in at -$0.57 per share, but it turned out to be -$0.48, a 15.80% surprise. For the quarter, EBITDA amounted to -$47.68 million. Shareholders own equity worth $139.66 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Vroom Inc. (VRM) price momentum. RSI 9-day as of the close on 25 August was 29.94%, suggesting the stock is oversold, with historical volatility in this time frame at 88.07%.
As of today, VRM’s price is $1.1370 -7.38% or -$0.0900 from its 5-day moving average. VRM is currently trading -46.95% lower than its 20-day SMA and +28.09% higher than its 100-day SMA. However, the stock’s current price level is -5.83% below the SMA50 and +24.18% above the SMA200.
The stochastic %K and %D were 7.04% and 5.61%, respectively, and the average true range (ATR) was 0.1591. With the 14-day stochastic at 7.07% and the average true range at 0.1863, the RSI (14) stands at 34.76%. The stock has reached -0.0506 on the 9-day MACD Oscillator while the 14-day reading was at -0.1689.
Analyst Ratings
Robert W. Baird downgraded Vroom Inc. (NASDAQ: VRM) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Vroom Inc. (VRM) among analysts is Hold. According to current brokerage recommendations, 0 brokerage firms advise that investors sell VRM, while 6 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 0 others rate it as a “buy”.
What is VRM’s price target for the next 12 months?
Analysts predict a range of price targets between $1.00 and $1.25, with a median target of $1.00. Taking a look at these predictions, the average price target given by analysts for Vroom Inc. (VRM) stock is $1.06.
