Virco Story

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VIRC -- USA Stock  

USD 2.76  0.05  1.84%

Virco Manufacturing is currently generating 0.227% in daily expected returns and assumes 3.6224% risk (volatility on return distribution) over the 90 days horizon. As many investors are getting excited about consumer cyclical space, it is fair to go over Virco Manufacturing. We will cover the possibilities of Virco Manufacturing's current volatility to continue through January.
Published over three weeks ago
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Will Virco Manufacturing (NASDAQ:VIRC) current volatility spike continue?
Virco Manufacturing conducts business under Consumer Cyclical sector and is part of Furnishings, Fixtures & Appliances industry.
Volatility is a rate at which the price of Virco Manufacturing or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Virco Manufacturing may increase or decrease. In other words, similar to Virco's beta indicator, it measures the risk of Virco Manufacturing and helps estimate the fluctuations that may happen in a short period of time. So if prices of Virco Manufacturing fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Virco Manufacturing's Liquidity

Virco Manufacturing financial leverage refers to using borrowed capital as a funding source to finance Virco Manufacturing ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Virco Manufacturing financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Virco Manufacturing's total debt and its cash.

How Virco utilizes its cash?

To perform a cash flow analysis of Virco Manufacturing, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Virco Manufacturing is receiving and how much cash it distributes out in a given period. The Virco Manufacturing cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Sale by Donald Rudkin of 33000 shares of Virco Manufacturing

Legal trades by Virco Manufacturing insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Virco insider trading alert for sale of common stock $.01 par value by Donald Rudkin, the corporate stakeholder, on 24th of August 2020. This event was filed by Virco Mfg Corporation with SEC on 2020-08-24. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Virco

The entity reported the previous year's revenue of 160.44 M. Net Loss for the year was (975 K) with profit before overhead, payroll, taxes, and interest of 71.67 M.

Chances of Virco Manufacturing investors to go out of control

Current kurtosis is at 3.64. Virco Manufacturing shows above-average downside volatility for the selected time horizon. We advise investors to inspect Virco Manufacturing further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Virco Manufacturing future alpha.

The Bottom Line

Whereas other entities in the furnishings, fixtures & appliances industry are either recovering or due for a correction, Virco may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Virco valuation and our trade advice on Virco Manufacturing is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Virco Manufacturing.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Virco Manufacturing. Please refer to our Terms of Use for any information regarding our disclosure principles.

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