BofA/Merrill slashes price target on Veritiv Corporation [VRTV] – find out why.

Veritiv Corporation [NYSE: VRTV] loss -19.06% on the last trading session, reaching $16.73 price per share at the time. The company report on November 17, 2020 that Veritiv Announces Pricing of Secondary Offering of Common Stock.

Veritiv Corporation (NYSE: VRTV) (the “Company” or “Veritiv”) announced the pricing of an underwritten public offering of 1,400,000 shares of its common stock by UWW Holdings, LLC, one of its existing stockholders and the former parent company of Unisource Worldwide, Inc., at a public offering price of $18.50 per share. Morgan Stanley & Co. LLC is acting as the sole underwriter of the offering. The Company is not selling any shares of common stock in the offering, and the Company will not receive any proceeds from the offering by the selling stockholder. Subject to the satisfaction of customary conditions, the offering is expected to close on November 19, 2020.

A registration statement (including prospectus) relating to these securities was filed with and declared effective by the Securities and Exchange Commission (the “SEC”). Information about the offering is available in the prospectus supplement to be filed by the Company with the SEC. When available, copies of the prospectus supplement and the accompanying prospectus relating to the offering may be obtained by contacting Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014.

Veritiv Corporation represents 15.89 million in outstanding shares, while the company has a total market value of $261.99 million with the latest information. VRTV stock price has been found in the range of $16.60 to $19.48.

If compared to the average trading volume of 88.10K shares, VRTV reached a trading volume of 1048274 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Veritiv Corporation [VRTV]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for VRTV shares is $26.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on VRTV stock is a recommendation set at 1.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BofA/Merrill have made an estimate for Veritiv Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on March 06, 2020. While these analysts kept the previous recommendation, BofA/Merrill dropped their target price from $37 to $26. The new note on the price target was released on May 13, 2019, representing the official price target for Veritiv Corporation stock. Previously, the target price had yet another raise to $37, while BofA/Merrill analysts kept a Buy rating on VRTV stock.

The Average True Range (ATR) for Veritiv Corporation is set at 1.67, with the Price to Sales ratio for VRTV stock in the period of the last 12 months amounting to 0.04. The Price to Book ratio for the last quarter was 0.49, with the Price to Cash per share for the same quarter was set at 7.18. Price to Free Cash Flow for VRTV in the course of the last twelve months was 1.01 with Quick ratio for the last quarter at 1.40.

Trading performance analysis for VRTV stock

Veritiv Corporation [VRTV] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -17.06. With this latest performance, VRTV shares dropped by -2.39% in over the last four-week period, additionally plugging by 69.33% over the last 6 months – not to mention a drop of -5.10% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for VRTV stock in for the last two-week period is set at 47.33, with the RSI for the last a single of trading hit 42.61, and the three-weeks RSI is set at 49.16 for Veritiv Corporation [VRTV]. The present Moving Average for the last 50 days of trading for this stock 15.84, while it was recorded at 19.18 for the last single week of trading, and 13.75 for the last 200 days.

Veritiv Corporation [VRTV]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Veritiv Corporation [VRTV] shares currently have an operating margin of +0.88 and a Gross Margin at +11.63. Veritiv Corporation’s Net Margin is presently recorded at -0.39.

Return on Total Capital for VRTV is now 4.08, given the latest momentum, and Return on Invested Capital for the company is -1.85. Return on Equity for this stock declined to -5.47, with Return on Assets sitting at -1.12. When it comes to the capital structure of this company, Veritiv Corporation [VRTV] has a Total Debt to Total Equity ratio set at 227.92. Additionally, VRTV Total Debt to Total Capital is recorded at 69.50, with Total Debt to Total Assets ending up at 45.37. Long-Term Debt to Equity for the company is recorded at 208.69, with the Long-Term Debt to Total Capital now at 63.64.

Reflecting on the efficiency of the workforce at the company, Veritiv Corporation [VRTV] managed to generate an average of -$3,687 per employee. Receivables Turnover for the company is 6.84 with a Total Asset Turnover recorded at a value of 2.90.Veritiv Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.40 and a Current Ratio set at 2.00.

Veritiv Corporation [VRTV]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Veritiv Corporation posted 0.21/share EPS, while the average EPS was predicted by analysts to be reported at 0.29/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -27.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for VRTV.

An analysis of insider ownership at Veritiv Corporation [VRTV]

There are presently around $251 million, or 97.30% of VRTV stock, in the hands of institutional investors. The top three institutional holders of VRTV stocks are: BAUPOST GROUP LLC/MA with ownership of 3,564,439, which is approximately 0% of the company’s market cap and around 1.20% of the total institutional ownership; BAIN CAPITAL INVESTORS LLC, holding 2,783,840 shares of the stock with an approximate value of $46.57 million in VRTV stocks shares; and BLACKROCK INC., currently with $30.99 million in VRTV stock with ownership of nearly -4.432% of the company’s market capitalization.

Positions in Veritiv Corporation stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 45 institutional holders increased their position in Veritiv Corporation [NYSE:VRTV] by around 536,063 shares. Additionally, 65 investors decreased positions by around 713,803 shares, while 42 investors held positions by with 13,769,178 shares. The mentioned changes placed institutional holdings at 15,019,044 shares, according to the latest SEC report filing. VRTV stock had 12 new institutional investments in for a total of 126,344 shares, while 19 institutional investors sold positions of 138,353 shares during the same period.

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