Vroom Inc. [VRM] is -87.95% lower this YTD. Is it still time to buy?


Vroom Inc. [NASDAQ: VRM] loss -6.47% or -0.09 points to close at $1.30 with a heavy trading volume of 11153307 shares. The company report on May 26, 2022 that Vroom Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4).

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Vroom, Inc. (Nasdaq: VRM), a leading e-commerce platform for buying and selling used vehicles, today reported that on May 20, 2022, the Compensation Committee of Vroom’s Board of Directors approved the grant of inducement restricted stock unit awards covering 298,329 shares of Vroom’s common stock to 21 non-executive employees and one executive employee of Vroom and its affiliates to induce them to join as employees of Vroom and its affiliates. The awards were granted under Vroom’s 2022 Inducement Award Plan, and generally vest in equal annual increments of 1/3 over the three-year period following their grant, subject to continued employment through each applicable vesting date. The awards were granted as employment inducement awards pursuant to the Nasdaq listing rules.

It opened the trading session at $1.37, the shares rose to $1.38 and dropped to $1.29, the range by which the price of stock traded the whole day. The daily chart for VRM points out that the company has recorded -90.42% loss over the past six months. However, it is still -20.37% lower than its most recent low trading price.

If we look at the average trading volume of 18.33M shares, VRM reached to a volume of 11153307 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 Vroom Inc. [VRM]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for VRM shares is $7.82 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on VRM stock is a recommendation set at 2.50. 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.

William Blair have made an estimate for Vroom Inc. shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on April 28, 2022. While these analysts kept the previous recommendation, Stifel raised their target price from $10 to $4. The new note on the price target was released on March 02, 2022, representing the official price target for Vroom Inc. stock. Previously, the target price had yet another drop from $16 to $6, while Wells Fargo kept a Equal Weight rating on VRM stock.

The Average True Range (ATR) for Vroom Inc. is set at 0.19, with the Price to Sales ratio for VRM stock in the period of the last 12 months amounting to 0.05. The Price to Book ratio for the last quarter was 0.29, with the Price to Cash per share for the same quarter was set at 4.07.

Trading performance analysis for VRM stock

Vroom Inc. [VRM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.72. With this latest performance, VRM shares dropped by -18.24% in over the last four-week period, additionally sinking by -90.42% over the last 6 months – not to mention a drop of -97.01% 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 VRM stock in for the last two-week period is set at 39.96, with the RSI for the last a single of trading hit 40.64, and the three-weeks RSI is set at 37.96 for Vroom Inc. [VRM]. The present Moving Average for the last 50 days of trading for this stock 1.8387, while it was recorded at 1.3700 for the last single week of trading, and 11.3984 for the last 200 days.

Vroom Inc. [VRM]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Vroom Inc. [VRM] shares currently have an operating margin of -11.26 and a Gross Margin at +5.94. Vroom Inc.’s Net Margin is presently recorded at -11.65.

Return on Equity for this stock declined to -34.63, with Return on Assets sitting at -18.13.

Vroom Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.80.

An analysis of insider ownership at Vroom Inc. [VRM]

There are presently around $140 million, or 79.10% of VRM stock, in the hands of institutional investors. The top three institutional holders of VRM stocks are: ARROWMARK COLORADO HOLDINGS LLC with ownership of 7,775,211, which is approximately 72.292% of the company’s market cap and around 2.70% of the total institutional ownership; VANGUARD GROUP INC, holding 7,695,752 shares of the stock with an approximate value of $10.0 million in VRM stocks shares; and DAVIS SELECTED ADVISERS, currently with $9.39 million in VRM stock with ownership of nearly 2.966% of the company’s market capitalization.

Positions in Vroom Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 129 institutional holders increased their position in Vroom Inc. [NASDAQ:VRM] by around 48,666,399 shares. Additionally, 103 investors decreased positions by around 67,652,594 shares, while 29 investors held positions by with 8,467,453 shares. The mentioned changes placed institutional holdings at 107,851,540 shares, according to the latest SEC report filing. VRM stock had 52 new institutional investments in for a total of 14,905,081 shares, while 62 institutional investors sold positions of 37,591,798 shares during the same period.