Virco Manufacturing (NASDAQ:VIRC) Stock Breaks Above 200-Day Moving Average - Should You Sell?

Key Points

• Virco Manufacturing shares rose above their 200-day moving average, reaching $6.28 versus the $6.20 average, though trading volume was modest.
• Analyst sentiment remains cautious: one analyst rates the stock “Hold,” another rates it “Sell,” and the consensus rating is “Reduce.”
• The company exceeded quarterly expectations, reporting $0.55 in EPS versus $0.07 expected and revenue of $87.47 million versus $72.10 million; however, it still posted a negative net margin and return on equity.

Virco Manufacturing Corporation (NASDAQ:VIRC - Get Free Report) shares crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $6.20 and traded as high as $6.28. Virco Manufacturing shares last traded at $6.28, with a volume of 13,349 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Wall Street Zen upgraded Virco Manufacturing from a "sell" rating to a "hold" rating in a report on Saturday, September 5th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Virco Manufacturing in a research report on Friday, October 2nd. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce".

Virco Manufacturing Stock Performance

The company has a current ratio of 2.53, a quick ratio of 1.43 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $99.00 million, a PE ratio of -39.25 and a beta of 0.14. The firm's 50-day simple moving average is $6.30 and its 200-day simple moving average is $6.20.

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. Virco Manufacturing had a negative net margin of 1.31% and a negative return on equity of 2.32%. The business had revenue of $87.47 million for the quarter, compared to analyst estimates of $72.10 million.

Virco Manufacturing Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Friday, September 18th were paid a $0.0250 dividend. The ex-dividend date of this dividend was Friday, September 18th. This represents a $0.10 annualized dividend and a yield of 1.6%. Virco Manufacturing's dividend payout ratio is -62.50%.

Institutional Investors Weigh In On Virco Manufacturing

Large investors have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in shares of Virco Manufacturing during the 2nd quarter worth $860,000. Bank of New York Mellon Corp bought a new stake in Virco Manufacturing during the second quarter valued at about $635,000. Susquehanna International Group LLP grew its stake in Virco Manufacturing by 564.4% in the second quarter. Susquehanna International Group LLP now owns 68,437 shares of the company's stock valued at $420,000 after purchasing an additional 58,137 shares during the last quarter. SummerHaven Investment Management LLC purchased a new position in Virco Manufacturing in the third quarter valued at about $374,000. Finally, GSA Capital Partners LLP purchased a new position in Virco Manufacturing in the second quarter valued at about $332,000. 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, stools, computer furniture, storage products, and collaborative learning furniture.

The company serves K-12 schools, colleges and universities, government institutions, and other organizations through a network of dealers, distributors and direct sales channels. Its products are used in classrooms, libraries, cafeterias, laboratories, administrative areas and other educational or institutional settings.

Founded in 1950 by Julian Virtue, Virco has historically focused on domestic manufacturing and maintains operations associated with its long-standing U.S.

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