The stock of Vroom, Inc. (NASDAQ:VRM) is now priced at $73.87 and the shares are 5.24 points up or 7.64% higher compared to its previous closing price of $68.63. The stock had 1.011 million contracts set over the past session. VRM shares’ daily volume is compared to its average trading volume at 1.721 million shares. However, it has a float of 80.41 million and although its performance was 13.02% over the week, it’s one to watch. Analysts have given the VRM stock a yearly average price target of $69.88 per share. It means the stock’s downside potential is -5.4% with the VRM share price recently placing at $68.66 to $75.49. However, some brokerage firms have priced the stock below the average, including one that has called $52.
The shorts are climbing into the Vroom, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the VRM shares have risen. Short interest in the stock represents just 3.12% of its float, but the volume has raised by 411020. The volume of shorted shares rised to 2.509 million from 2.098 million shares over the last two weeks. The average intraday trading volume has been 1.646 million shares, which means that days to cover moved to roughly 1.524227.
Looking at current readings, Vroom, Inc.’s two-week RSI is 68.88. This suggests that the stock is neutral at the moment and that VRM shares’ price movement remains stable. The stochastic readings are equally revealing at 81.72% meaning the VRM share price is currently in oversold territory.
The technical chart shows that the VRM stock will likely settle at between $76.69 and $79.5 per share. However, if the stock dips below $69.86, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $65.84.
Currently, the stock is trading in the green of MACD, with a reading of 3.35. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Maxim Group assigned VRM a rating of Overweight in their intiating review released on August 26. The Benchmark Company analysts downgraded their recommendation of the stock from Buy to Hold in a flash note released to investors on August 14. JP Morgan analysts see the stock as Neutral when the analysts initiated the share price coverage on July 08, placing it at $55.
The average rating for the VRM equity is 1.9 and is currently gathering a bullish momentum. Of 11 analysts tracking Vroom, Inc. polled by Reuters, 4 rated VRM as a hold. The remaining 7 analysts were split evenly. However, the split wasn’t equal as a majority (7) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
The stocks P/S ratio currently stands below the group’s average of 72. Vroom, Inc. has its P/E ratio at 11.8, which means that the stock is currently trading at a premium relative to the 3 industry average.