Vera Bradley Inc. (VRA) shares are trading at higher $7.14 and the avg recommendation for the stock is Moderate Buy.
To add more color to this target, the company’s high over the last year is $12.75 and the low is $3.12. Over the last 52 weeks, VRA is down -16.59% while the S&P 500 is up 21.65%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, VRA reported a profit of $34.19 million. Vera Bradley Inc. also saw revenues increase to $69.28 million. In addition, VRA has free cash flow of -$26.98 million as of 04-2020. The company’s EBITDA came in at -$13.22 million which compares well with its peers.
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VRA booked profit margins of -0.80%, its Return on Equity (ROE) is -1.30%, and its Return on Assets is -0.70%. All told, it is clear that, VRA needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. VRA has a short ratio of 4.44 and outstanding shares of 33.33M.
VRA has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.35 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.12. Vera Bradley Inc. VRA also noted assets of $551.4 million at the end of the last quarter. Investors should also keep an eye on sector updates as VRA has historically followed its peers on positive news.
All told, Vera Bradley Inc. VRA has strung together solid data and demonstrated underlying fundamentals. At its current valuation, VRA represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Vera Bradley Inc. VRA is now commanding a market cap of 216.20M and a float of 24.68M. VRA is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of VRA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in VRA, either long or short, and we have not been compensated for this article.