Morgan Stanley slashes price target on Vipshop Holdings Limited [VIPS] – find out why.

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Vipshop Holdings Limited [NYSE: VIPS] closed the trading session at $7.07 on 04/22/22. The day’s price range saw the stock hit a low of $6.94, while the highest price level was $7.46. The company report on March 31, 2022 that Vipshop Announces US$1 Billion Share Repurchase Program.

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Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China (“Vipshop” or the “Company”), today announced that its board of directors has authorized a new share repurchase program under which the Company may repurchase up to US$1 billion of its American depositary shares or Class A ordinary shares over the next 24-month period. The Company plans to adopt and implement such share repurchase program in accordance with applicable rules and requirements under the Securities Exchange Act of 1934, as amended, and the Company’s insider trading policy.

The Company’s proposed repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission Rule 10b-18 and/or Rule 10b5-1 requirements. The Company’s board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company expects to fund the repurchases out of its existing cash balance.

The stocks have a year to date performance of -15.83 percent and weekly performance of -8.54 percent. The stock has been moved at -44.68 percent over the last six months. The stock has performed -24.95 percent around the most recent 30 days and changed -20.20 percent over the most recent 3-months.

If compared to the average trading volume of 9.13M shares, VIPS reached to a volume of 10809648 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Vipshop Holdings Limited [VIPS]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for VIPS shares is $13.18 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on VIPS stock is a recommendation set at 2.30. 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.

Morgan Stanley have made an estimate for Vipshop Holdings Limited shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on February 24, 2022. While these analysts kept the previous recommendation, Citigroup dropped their target price from $14 to $11. The new note on the price target was released on November 22, 2021, representing the official price target for Vipshop Holdings Limited stock.

The Average True Range (ATR) for Vipshop Holdings Limited is set at 0.60, with the Price to Sales ratio for VIPS stock in the period of the last 12 months amounting to 0.27. The Price to Book ratio for the last quarter was 0.95, with the Price to Cash per share for the same quarter was set at 4.78.

VIPS stock trade performance evaluation

Vipshop Holdings Limited [VIPS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.54. With this latest performance, VIPS shares dropped by -24.95% in over the last four-week period, additionally sinking by -44.68% over the last 6 months – not to mention a drop of -77.73% 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 VIPS stock in for the last two-week period is set at 34.32, with the RSI for the last a single of trading hit 25.70, and the three-weeks RSI is set at 38.86 for Vipshop Holdings Limited [VIPS]. The present Moving Average for the last 50 days of trading for this stock 8.57, while it was recorded at 7.36 for the last single week of trading, and 11.26 for the last 200 days.

Vipshop Holdings Limited [VIPS]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Vipshop Holdings Limited [VIPS] shares currently have an operating margin of +3.98 and a Gross Margin at +19.75. Vipshop Holdings Limited’s Net Margin is presently recorded at +4.02.

Return on Equity for this stock inclined to 15.39, with Return on Assets sitting at 7.77.

Vipshop Holdings Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.30.

Earnings per share (EPS) analysis for Vipshop Holdings Limited [VIPS] stock

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 VIPS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Vipshop Holdings Limited go to 3.90%.

Vipshop Holdings Limited [VIPS]: Insider Ownership positions

There are presently around $2,445 million, or 60.60% of VIPS stock, in the hands of institutional investors. The top three institutional holders of VIPS stocks are: HARRIS ASSOCIATES L P with ownership of 38,410,444, which is approximately 34.652% of the company’s market cap and around 4.75% of the total institutional ownership; BLACKROCK INC., holding 26,604,163 shares of the stock with an approximate value of $188.09 million in VIPS stocks shares; and VANGUARD GROUP INC, currently with $114.41 million in VIPS stock with ownership of nearly 0.727% of the company’s market capitalization.

Positions in Vipshop Holdings Limited stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 137 institutional holders increased their position in Vipshop Holdings Limited [NYSE:VIPS] by around 68,004,454 shares. Additionally, 147 investors decreased positions by around 67,609,476 shares, while 46 investors held positions by with 210,244,601 shares. The mentioned changes placed institutional holdings at 345,858,531 shares, according to the latest SEC report filing. VIPS stock had 42 new institutional investments in for a total of 22,359,842 shares, while 47 institutional investors sold positions of 14,302,397 shares during the same period.