Virco Stock Story


USD 4.65  0.11  2.42%   

In general, we focus on analyzing Virco (NASDAQ:VIRC) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Virco MFG Cp daily price indicators and compare them against related drivers. My story will go over Virco MFG. We will evaluate if Virco MFG shares are reasonably priced going into July.
Published over two months ago
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Will Virco MFG investors stop to exit in July?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Virco MFG has an asset utilization ratio of 207.02 percent. This suggests that the company is making $2.07 for each dollar of assets. An increasing asset utilization means that Virco MFG Cp is more efficient with each dollar of assets it utilizes for everyday operations.
The company has Profit Margin (PM) of (8.19) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (1.37) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.01.
The successful prediction of Virco MFG stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Virco MFG Cp, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Virco MFG based on Virco MFG hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Virco MFG's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Virco MFG's related companies.

Use Technical Analysis to project Virco expected Price

Virco MFG technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Virco MFG technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Virco MFG trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How does Virco utilize its cash?

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

Payment of 1645 shares by Hupe Robert M of Virco MFG subject to Rule 16b-3

Legal trades by Virco MFG 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 payment of common stock $.01 par value by Hupe Robert M, VP General Counsel, on 22nd of June 2022. This event was filed by Virco Mfg Corporation with SEC on 2022-06-22. 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 Perspective

The current rise in Virco MFG Cp short term price appreciation may raise some interest from investors as it is trading at a share price of 3.40 on 9,666 in trading volume. The company executives have successfully maneuvered the company at convenient times to take advantage of all market conditions in May. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.98. The current volatility is consistent with the ongoing market swings in May 2022 as well as with Virco MFG Cp unsystematic, company-specific events.

Our Virco analysis suggests possible reversion in July

Total risk alpha is down to 0.3. It may suggest a possible volatility slip. Virco MFG Cp currently demonstrates below-average downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.31. However, we advise investors to further question Virco MFG Cp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Virco MFG's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Virco MFG's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Virco MFG Implied Volatility

Virco MFG's implied volatility exposes the market's sentiment of Virco MFG Cp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Virco MFG's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Virco MFG stock will not fluctuate a lot when Virco MFG's options are near their expiration.

Our Takeaway on Virco MFG Investment

Whereas many of the other players under the furnishings, fixtures & appliances industry are still a bit expensive, Virco MFG may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 MFG.

Editorial Staff

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 Vlad Skutelnik do not own shares of Virco MFG Cp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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