Virco Manufacturing (NASDAQ:VIRC) Share Price Breaks Above 200-Day Moving Average - What's Next?

Key Points

• Virco Manufacturing shares broke above their 200-day moving average, reaching $6.58 before last trading at $6.52, compared with a 200-day average of $6.12.
• Analyst sentiment remains cautious: coverage includes one Hold and one Sell rating, resulting in a consensus “Reduce” rating.
• The company exceeded quarterly expectations with $0.55 in EPS versus $0.07 forecast and $87.47 million in revenue versus $72.10 million expected; it also announced a $0.025 quarterly dividend and reported recent insider buying.

Virco Manufacturing Corporation (NASDAQ:VIRC - Get Free Report) passed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $6.12 and traded as high as $6.58. Virco Manufacturing shares last traded at $6.52, with a volume of 23,120 shares changing hands.

Wall Street Analysts Forecast Growth

VIRC has been the topic of several research reports. Wall Street Zen raised shares of Virco Manufacturing from a "sell" rating to a "hold" rating in a research report on Saturday, September 5th. Freedom Capital cut shares of Virco Manufacturing from a "strong-buy" rating to a "hold" rating in a report on Thursday, June 4th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Virco Manufacturing in a research note on Wednesday, July 8th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce".

Virco Manufacturing Price Performance

The firm has a market capitalization of $102.76 million, a price-to-earnings ratio of -40.75 and a beta of 0.20. The stock's fifty day moving average price is $6.15 and its two-hundred day moving average price is $6.12. The company has a current ratio of 2.53, a quick ratio of 1.43 and a debt-to-equity ratio of 0.03.

Virco Manufacturing (NASDAQ:VIRC - Get Free Report) last issued its earnings results on Friday, September 4th. The company reported $0.55 EPS for the quarter, topping analysts' consensus estimates of $0.07 by $0.48. The firm had revenue of $87.47 million during the quarter, compared to the consensus estimate of $72.10 million. Virco Manufacturing had a negative net margin of 1.31% and a negative return on equity of 2.32%.

Virco Manufacturing Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 18th will be given a dividend of $0.0250 per share. This represents a $0.10 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, September 18th. Virco Manufacturing's dividend payout ratio is currently -62.50%.

Insider Activity at Virco Manufacturing

In other Virco Manufacturing news, EVP Douglas A. Virtue acquired 8,083 shares of the company's stock in a transaction dated Wednesday, July 8th. The shares were acquired at an average price of $6.00 per share, for a total transaction of $48,498.00. Following the acquisition, the executive vice president owned 888,663 shares in the company, valued at $5,331,978. The trade was a 0.92% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In the last quarter, insiders bought 11,088 shares of company stock valued at $66,828. Corporate insiders own 16.94% of the company's stock.

Institutional Investors Weigh In On Virco Manufacturing

Several institutional investors have recently added to or reduced their stakes in the business. IFP Advisors Inc boosted its position in shares of Virco Manufacturing by 101.6% in the 2nd quarter. IFP Advisors Inc now owns 5,857 shares of the company's stock valued at $36,000 after purchasing an additional 2,952 shares during the period. Susquehanna International Group LLP increased its position in Virco Manufacturing by 564.4% during the second quarter. Susquehanna International Group LLP now owns 68,437 shares of the company's stock worth $420,000 after buying an additional 58,137 shares during the period. Empowered Funds LLC purchased a new stake in Virco Manufacturing in the second quarter valued at approximately $245,000. BlackRock Inc. purchased a new stake in Virco Manufacturing in the 2nd quarter valued at $860,000. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Virco Manufacturing in the second quarter valued at about $635,000. Hedge funds and other institutional investors own 30.97% of the company's stock.

Virco Manufacturing Company Profile

Virco Manufacturing Corporation designs, manufactures and distributes furniture and equipment primarily for the education market. Its product portfolio includes student desks and chairs, classroom tables, activity tables, teacher furniture, computer and technology furniture, storage products, and soft-seating solutions.

The company also serves other institutional and commercial customers, including government agencies, businesses, hospitality organizations and community facilities. Virco sells its products through a combination of direct sales and independent dealers, with a focus on schools and other organizations throughout the United States.

Virco was founded in 1950 by Julian Virtue and has developed into a long-standing U.S.

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