Shares of online used-vehicle platform Vroom rose 1.7% on Sept. 9 as the company announced a 9 million follow-on common stock offering after the markets closed on Sept. 8.
VRM) announced that it commenced an underwritten public offering of 9 million shares of its common stock pursuant to a registration statement on Form S-1 filed with the SEC (Securities and Exchange Commission).” data-reactid=”13″>Vroom (VRM) announced that it commenced an underwritten public offering of 9 million shares of its common stock pursuant to a registration statement on Form S-1 filed with the SEC (Securities and Exchange Commission).
Also, Vroom expects to grant the underwriters a 30-day option to purchase up to an additional 1.35 million shares of its common stock at the public offering price, less the underwriting discount.
Vroom priced its initial public offering at $22 and made its public debut on NASDAQ on June 9. Shares closed yesterday at $57.20, up 14% on a three-month basis.
On August 12, the company announced that its second-quarter revenue declined about 3% Y/Y to $253 million as a 45.2% rise in e-commerce sales was offset by lower revenue from the company’s sole physical location and wholesale revenue. Adjusted loss per share widened to $0.34 compared to $0.28 in 2019’s second quarter.
See VRM stock analysis on TipRanks)” data-reactid=”21″>The pandemic impacted demand in the first half of the second quarter and the company significantly reduced its inventory. However, demand increased in the second half but lower inventory levels prevented Vroom from fulfilling the improved demand. Investors were disappointed with the third-quarter revenue guidance in the range of $268 million to $290 million. (See VRM stock analysis on TipRanks)
Rajat Gupta upgraded Vroom to Buy from Hold while keeping the price target unchanged at $65. The analyst believes that the recent pullback in the stock, which he sees as being "driven by a broad market rotation away from momentum stocks," offers an attractive entry point into a company with a business model he has always seen "as favorable in the long-term."” data-reactid=”22″>On September 8, J.P. Morgan analyst Rajat Gupta upgraded Vroom to Buy from Hold while keeping the price target unchanged at $65. The analyst believes that the recent pullback in the stock, which he sees as being “driven by a broad market rotation away from momentum stocks,” offers an attractive entry point into a company with a business model he has always seen “as favorable in the long-term.”
Gupta also added that while Vroom’s shares have gained less than peers over the last couple of months, his fiscal 2021/fiscal 2022 volume assumptions for Vroom have moved up about 8% over the same period, which is a greater degree of relative upward revisions.
price target of $68.89 indicates 20.4% upside potential in the months ahead.” data-reactid=”24″>Overall, 8 Buys and 3 Hold ratings for Vroom add up to a Moderate Buy consensus. The average analyst price target of $68.89 indicates 20.4% upside potential in the months ahead.
United Airlines Lowers 3Q Revenue Forecast As Travel Demand Fails To Return
UPS To Hire 100,000 Employees For Peak Holiday Season
Zscaler 4Q Sales Outperform Fueled By Cybersecurity Demand” data-reactid=”33″>Related News:
United Airlines Lowers 3Q Revenue Forecast As Travel Demand Fails To Return
UPS To Hire 100,000 Employees For Peak Holiday Season
Zscaler 4Q Sales Outperform Fueled By Cybersecurity Demand
More recent articles from Smarter Analyst:
