Vonage Holdings Corp. (VG) hit an intraday high Thursday at $9.26. The shares finished at $9.12, after trading as low as $9.075 earlier in the session. It dropped -0.87% in recent trade and currently has a stock-market value of $2.09B. Trading activity significantly weakened as the volume at ready counter decreased to 2,739,236 shares versus 2,901,150 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,866,014 shares. The stock is now 15.3% above against its bear-market low of $7.91 on December 24, 2018. It has retreated -61.51% since it’s 52-week high of $14.73 reached in September. Now the market price is down -8.8% on the year and up 4.47% YTD.
VG’s 50 day simple moving average (SMA 50) price is $10.23 and its 200-day simple moving average (SMA 200) price is $12.08. The company’s stock currently has a total float of 225.42M shares. Its weekly volatility is hovering around 3.07% and felt 3.8% volatility in price over a month. On the upside, the share price will test short term resistance at around $9.23. On a downside, the stock is likely to find some support, which begins at $9.04. The failure to get near-term support could push it to $8.96.
Separately, it has been reported that multiple insider activity took place at Vonage Holdings Corp. (VG). Director Citron Jeffrey A sold 250,000 shares for $11,921,659 in transaction occurred on 2019/01/09. After making this transaction, the Director owns a direct stake of 2,272,500 shares, worth $109,000,000, as per the last closing price. On 2018/12/19 Citron Jeffrey A, Director at VG, dumped 400,000 shares at an average price of $9.16 per share. The selling total is valued at $111,000,000.
Director, Citron Jeffrey A had divested 500,000 shares for $12,566,720 through a trade on 2018/11/29. Following this activity, the insider holds 5,335,000 shares worth $115,000,000 as of recent close. Wall Street’s most bullish Vonage Holdings Corp. (NYSE:VG) analysts are predicting the share price to blow past $23 per share during the next 12 months. The current median share price forecast by them is $15, suggesting that the stock could increase 64.47% in that time frame. The average price target of $16.44 calls for a nearly 80.26% increase in the stock price.
When looking at valuations, Vonage Holdings Corp. (VG) has a cheap P/E of 39.14x as compared to industry average of 55.42x. Moreover, it trades for 34.29 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4.05x price/book and 2.03x price/sales. Compared to others, Vonage Holdings Corp. is in a different league with regards to profitability, having net margins of -1.2%. To put some perspective around this, the industry’s average net margin is 6.79%. VG’s ROE is -2.5%, which is also considerably worse than the industry’s ROE of 9.21%. It’s also not liquid in the near term, with a current ratio of 0.7. The stock has a debt/capital of 0.39.
Shares of Vonage Holdings Corp. (VG) have dropped -30.2% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, Vonage Holdings Corp. (NYSE:VG) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 2 quarters (16%), whereas at 5 occasion EPS met analyst expectations. VG last reported earnings on November 02, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.09 per share, -99.05% change on the same period last year. That was better than consensus for $0.08. Revenue for the recent quarter stood at $261.53 million, up 3% on last year and below the $262.99 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $276.86 million to $286.24 million, which should be compared with $260.46 million generated last year. EPS is seen in a range of $0.04 to $0.08, against the $0.09 reported a year ago.