Technicals Say Vipshop Holdings Ltd ADR (VIPS) Is A Hold

Vipshop Holdings Ltd ADR (NYSE:VIPS) finished Wednesday with an addition of $0.66 to close at $15.62, an upside of 4.41 percent. An average of 2,734,980 shares of common stock have been traded in the last five days. There was a gain of $1.17 in the past week, and it reached a new high 42 times over the past 12 months. The last 20 days have seen an average of 2,824,105 shares traded, while the 50-day average volume stands at 3,194,282.

VIPS stock has decreased by -3.76% in the last month. The company shares reached their 1-month lowest point of $14.03 on 09/21/23. With the stock rallying to its 52-week high on 07/31/23, shares of the company touched a low of $6.36 and a high of $19.13 in 52 weeks. It has reached a new high 15 times so far this year and achieved 14.52% or $1.98 in price. In spite of this, the price is down -18.35% from the 52-week high.

Valuation Metrics

Vipshop Holdings Ltd ADR (VIPS) has a trailing price-to-earnings (P/E) ratio of 8.20. The stock’s beta is 0.61. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.46, the price-to-book (PB) ratio at 1.90.

Financial Health

The quick ratio of Vipshop Holdings Ltd ADR for the recent quarter was 0.97, and the current ratio was 1.14, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.02 and a total debt to equity ratio of 0.04 for the recent quarter. Vipshop Holdings Ltd ADR’s EBITDA margin is 6.79%, while its operating margin for the same period stands at 6.28%. Its gross profit as reported stood at $3.13 billion compared to revenue of $14.96 billion.

Earnings Surprise

In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $913.24 million in the quarter, while revenues were grew 19.57%.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Vipshop Holdings Ltd ADR (VIPS) price momentum. RSI 9-day as of the close on 27 September was 63.03%, suggesting the stock is Neutral, with historical volatility in this time frame at 28.12%.

As of today, VIPS’s price is $14.99 +8.10% or $1.17 from its 5-day moving average. VIPS is currently trading -4.87% lower than its 20-day SMA and +4.13% higher than its 100-day SMA. However, the stock’s current price level is -6.86% below the SMA50 and +20.15% above the SMA200.

The stochastic %K and %D were 69.51% and 51.93%, respectively, and the average true range (ATR) was 0.55. With the 14-day stochastic at 87.85% and the average true range at 0.57, the RSI (14) stands at 54.07%. The stock has reached 0.37 on the 9-day MACD Oscillator while the 14-day reading was at 0.37.

Analyst Ratings

JP Morgan upgraded Vipshop Holdings Ltd ADR (NYSE: VIPS) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Vipshop Holdings Ltd ADR (VIPS) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell VIPS, while 7 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 16 others rate it as a “buy”.

What is VIPS’s price target for the next 12 months?

Analysts predict a range of price targets between $102.25 and $160.38, with a median target of $131.36. Taking a look at these predictions, the average price target given by analysts for Vipshop Holdings Ltd ADR (VIPS) stock is $131.68.

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