Vroom Inc. [NASDAQ: VRM] gained 6.21% or 0.02 points to close at $0.25 with a heavy trading volume of 3996234 shares. The company report on January 22, 2024 at 4:10 PM that Vroom Announces Wind-Down of Ecommerce Used Vehicle Operations.
Vroom, Inc. (Nasdaq:VRM) (Vroom, or the Company), a leading ecommerce platform for buying and selling used vehicles, today announced that it is discontinuing its ecommerce operations and winding down its used vehicle dealership business in order to preserve liquidity and enable the Company to maximize stakeholder value through its remaining businesses. Vroom owns and operates United Auto Credit Corporation (UACC), a leading automotive finance company, and CarStory, a leader in AI-powered analytics and digital services for automotive retail. UACC and CarStory will continue to serve their third-party customers and focus on growing those businesses.
Under the Value Maximization Plan approved by Vroom’s Board of Directors, the Company is suspending transactions through vroom.com, planning to sell its current used vehicle inventory through wholesale channels, halting purchases of additional vehicles, and executing a reduction-in-force commensurate with its reduced operations.
The daily chart for VRM points out that the company has recorded -89.29% loss over the past six months.
If we look at the average trading volume of 3.23M shares, VRM reached to a volume of 3996234 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 $1.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on VRM stock is a recommendation set at 3.00. 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.
Robert W. Baird have made an estimate for Vroom Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on November 22, 2022.
The Average True Range (ATR) for Vroom Inc. is set at 0.06, with the Price to Sales ratio for VRM stock in the period of the last 12 months amounting to 0.04. The Price to Book ratio for the last quarter was 0.13, with the Price to Cash per share for the same quarter was set at 2.02.
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 -5.27. With this latest performance, VRM shares dropped by -59.10% in over the last four-week period, additionally sinking by -89.29% over the last 6 months – not to mention a drop of -77.19% 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 27.55, with the RSI for the last a single of trading hit 25.99, and the three-weeks RSI is set at 29.78 for Vroom Inc. [VRM]. The present Moving Average for the last 50 days of trading for this stock 0.5750, while it was recorded at 0.2443 for the last single week of trading, and 1.0520 for the last 200 days.
Vroom Inc. [VRM]: A deeper dive into fundamental analysis
Vroom Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.94 and a Current Ratio set at 1.23.
Vroom Inc. [VRM]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Vroom Inc. posted -0.61/share EPS, while the average EPS was predicted by analysts to be reported at -0.69/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 11.60%. 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 VRM.
An analysis of Institutional ownership at Vroom Inc. [VRM]
The top three institutional holders of VRM stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in VRM stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in VRM stock with ownership which is approximately 5.8325%.
