The stock of Vroom Inc. (NASDAQ:VRM) decreased by -$0.03 on Tuesday to finish at $1.18, down -2.48 percent. The last five days have seen an average of 2,832,520 shares of common stock traded. 16 times new highs were reached in the current year, with a gain of $0.1600. The average number of shares traded over the last 20 days was 2,914,555, while the average volume over the last 50 days totaled 6,308,798.
VRM stock dropped -3.28% since last month. On 08/22/23, the company’s shares reached a one-month low of $1.0600. The stock touched a high of $2.82 on 07/19/23, after rallying from a low of $0.73 in 52 weeks. The price of VRM stock has risen by 15.69% or $0.1600 this year, reaching a new high 16 times. Still, the stock price is down -58.16% from the 52-week high.
Insider Transactions
VRM stock investors should be aware that Vroom Inc. (VRM) stock had its last reported insider trading activity 5 days ago on Sep 15. On Sep 15, Chief Financial Officer Krakowiak Robert R. sold 7,399 shares at $1.30 each. This transaction resulted in the insider making $9,600. On May 25, MYLOD ROBERT J JR added 500,000 shares at a price of US$0.76. After the transaction, the insider now owns 970,138 shares. Principal Accounting Officer Zakowicz Agnieszka had earlier sold 6,131 shares on May 22 for $0.77 a share. The transaction was completed for $4,731.
Valuation Metrics
Beta for the stock is 2.29. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.17, the price-to-book (PB) ratio of 0.49.
Financial Health
For the recent quarter, Vroom Inc.’s quick ratio was 1.00, while its current ratio was 1.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the recent quarter is 1.61, and the total debt to equity ratio is 2.69. As far as profitability goes, gross margin for the trailing twelve months is 18.70% percent. Vroom Inc.’s EBITDA margin for the recent year was -17.97%, whereas its operating margin stood at -9.50% for the same period. Based on annual data, it had gross profit of $244.79 million and revenue of $1.95 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. VRM’s return on assets (ROA) during the last 12 months has been -10.10%. There was a -32.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -40.40%.
Earnings Surprise
A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $225.0 million, while revenues fell by -111.27% to $195.81 million. EBITDA was -$47.68 million for the quarter. At the end of Vroom Inc.’s most recent quarter, its liabilities totaled 1.25 billion, while its total debt was $1.12 billion. Equity owned by shareholders amounts to $139.66 million.
Technical Picture
Here’s a quick look at Vroom Inc.’s (VRM) price momentum from a technical perspective. As of 19 September, the RSI 9-day stood at 41.76%, suggesting the stock is Neutral, with a 81.87% historical volatility rate.
The stochastic %K and %D were 36.29% and 41.63% respectively, while the average true range (ATR) was 0.1125. Based on the 14-day stochastic reading of 25.32%, the RSI (14) reading is 41.91%. On the 9-day MACD Oscillator, the stock is at 0.0189, and the 14-day reading is at -0.0131.
Analyst Ratings
Vroom Inc. (NASDAQ: VRM) was downgraded by Robert W. Baird to a a Neutral rating in its latest research report. The stock was previously rated as a an Outperform. Analysts have assigned Vroom Inc. (VRM) an Hold rating. VRM is a stock that is recommended for selling by 0 brokerage firms, while 6 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 0 others recommend it as a buy.
What is VRM’s price target for the next 12 months?
The current consensus forecast for the stock is between $1.00 and $1.25, with a median target price of $1.00. In analyzing these forecasts, the average price target given by analysts for Vroom Inc. (VRM) is $1.06.
