Vroom Stock Analysis

VRM -  USA Stock  

USD 7.31  0.39  5.06%

The big decline in price over the last few months for Vroommay raise some interest from stakeholders as it is trading at a share price of 7.31 on very low momentum in trading volume. The company directors and management failed to add value to investors and positioning the company supply of money to exploit market volatility in December. However, diversifying your holdings with Vroom Inc or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.17. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Vroom Inc partners.
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Vroom Stock Analysis 

 
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The Vroom stock analysis report makes it easy to digest most publicly released information about Vroom and get updates on important government artifacts, including earning estimates, SEC corporate filings, and announcements. Vroom Stock analysis module also helps to analyze the Vroom price relationship with some important fundamental indicators such as market cap and management efficiency.

Vroom Stock Analysis Notes

About 97.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.05. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Vroom Inc has Price/Earnings To Growth (PEG) ratio of 0.27. The entity recorded a loss per share of 2.23. The firm had not issued any dividends in recent years. Vroom, Inc. operates an e-commerce platform for buying and selling of new and used cars in the United States. The company was incorporated in 2012 and is headquartered in New York, New York. Vroom operates under Auto Truck Dealerships classification in the United States and is traded on NASDAQ Exchange. It employs 944 people. For more information please call the company at 855 524 1300 or visit https://www.vroom.com.

Vroom Inc Investment Alerts

Many investors view ongoing market volatility as an opportunity to purchase more stocks at a favorable price or short it to generate a bearish trend profit opportunity. If you are one of those investors, make sure you clearly understand the position you are entering. Vroom's investment alerts are automatically generated signals that are significant enough to either complement your investing judgment regarding Vroom Inc or challenge it. These alerts can help you understand what you are buying and avoid costly mistakes.
Vroom Inc generated a negative expected return over the last 90 days
Vroom Inc has high historical volatility and very poor performance
Vroom Inc has high likelihood to experience some financial distress in the next 2 years
The company reported the last year's revenue of 2.66 B. Reported Net Loss for the year was (301.78 M) with profit before taxes, overhead, and interest of 71.55 M.
Vroom Inc has about 1.33 B in cash with (497.84 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 9.69, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Over 97.0% of the company outstanding shares are owned by institutional investors
Latest headline from www.marketscreener.com: Vrooms Super Bowl Spot Highlights Super Easy Way to Sell Your Car - marketscreener.com

Vroom Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Vroom is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Vroom Inc backward and forwards among themselves. Vroom's institutional investor refers to the entity that pools money to purchase Vroom's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Gradient Investments LlcCommon Shares5.8 K63 K
Fny Investment Advisers LlcCommon Shares2.4 K25 K
Carroll Financial Associates IncCommon Shares100010 K
Baldwin Brothers LlcCommon Shares500K
Spire Wealth ManagementCommon Shares417K
Patriot Financial Group Insurance Agency LlcCommon Shares200K
Ifp Advisors IncCommon Shares18.01000
Note, although Vroom's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Vroom Market Capitalization

The company currently falls under 'Mid-Cap' category with total capitalization of 1.1 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Vroom's market, we take the total number of its shares issued and multiply it by Vroom's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and these looking for more risk prefer small-cap and mid-cap equities.

Vroom Profitablity

Vroom's profitability indicators refer to fundamental financial ratios that showcase Vroom's ability to generate income relative to its revenue or operating costs. If, let's say, Vroom is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Vroom's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Vroom's profitability requires more research than a typical breakdown of Vroom's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
The company has Net Profit Margin of (11.36) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of (11.02) %, which entails that for every $100 of revenue, it lost -0.11.

Management Efficiency

The entity has Return on Asset of (9.0) % which means that on every $100 spent on asset, it lost $9.0. This is way below average. In the same way, it shows return on shareholders equity (ROE) of (26.03) %, meaning that it generated no profit with money invested by stockholders. Vroom management efficiency ratios could be used to measure how well vroom inc manages its routine affairs as well as how well it operates its assets and liabilities.

Technical Drivers

As of the 23rd of January, Vroom has the risk adjusted performance of (0.22), and Coefficient Of Variation of (357.01). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Vroom Inc, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Vroom Inc, which can be compared to its competition. Please validate Vroom Inc variance and potential upside to decide if Vroom is priced more or less accurately, providing market reflects its prevalent price of 7.31 per share. Given that Vroom Inc has jensen alpha of (1.14), we advise you to double-check Vroom Inc's current market performance to make sure the company can sustain itself at a future point.

Vroom Inc Price Movement Analysis

Incorrect Input. Please change your parameters or increase the time horizon required for running this function. The output start index for this execution was zero with a total number of output elements of zero. The Exponential Moving Average is calculated by weighting recent values of Vroom Inc more heavily than older values. View also all equity analysis or get more info about exponential moving average overlap studies indicator.

Vroom Inc Insider Trading Activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Vroom insiders, such as employees or executives, is commonly permitted as long as it does not rely on Vroom's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Vroom insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Vroom Technical and Predictive Indicators

Vroom Forecast Models

Vroom time-series forecasting models is one of many Vroom's stock analysis techniquest aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Vroom's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.

About Vroom Stock Analysis

Stock analysis is the technique used by a trader or investor to examine and evaluate how Vroom stock is reacting to, or reflecting on a current stock market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling Vroom shares will generate the highest return on investment. We also built our stock analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas, a specific sector, or an individual stock such as Vroom. By using and applying Vroom Stock analysis, traders can create a robust methodology for identifying Vroom entry and exit points for their positions.
Vroom, Inc. operates an e-commerce platform for buying and selling of new and used cars in the United States. The company was incorporated in 2012 and is headquartered in New York, New York. Vroom operates under Auto Truck Dealerships classification in the United States and is traded on NASDAQ Exchange. It employs 944 people.

Be your own money manager

As an investor, your ultimate goal is to build wealth. Optimizing your investment portfolio is an essential element in this goal. Using our stock analysis tools, you can find out how much better you can do when adding Vroom to your portfolios without increasing risk or reducing expected return.

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Also, please take a look at World Market Map. Note that the Vroom Inc information on this page should be used as a complementary analysis to other Vroom's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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When running Vroom Inc price analysis, check to measure Vroom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Vroom is operating at the current time. Most of Vroom's value examination focuses on studying past and present price action to predict the probability of Vroom's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Vroom's price. Additionally, you may evaluate how the addition of Vroom to your portfolios can decrease your overall portfolio volatility.
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Is Vroom's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vroom. If investors know Vroom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vroom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Vroom Inc is measured differently than its book value, which is the value of Vroom that is recorded on the company's balance sheet. Investors also form their own opinion of Vroom's value that differs from its market value or its book value, called intrinsic value, which is Vroom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vroom's market value can be influenced by many factors that don't directly affect Vroom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vroom's value and its price as these two are different measures arrived at by different means. Investors typically determine Vroom value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vroom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.