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

Key Points

• Virco Manufacturing shares crossed above their 200-day moving average, reaching $6.55 before closing near $6.50, compared with the $6.14 average.
• Analyst sentiment remains cautious: one analyst rates the stock Hold and another Sell, resulting in a consensus rating of “Reduce.”
• The company exceeded quarterly expectations with $0.55 in EPS versus $0.07 expected and $87.47 million in revenue versus $72.10 million estimated; it also announced a $0.025 quarterly dividend, yielding about 1.5% annually.

Virco Manufacturing Corporation (NASDAQ:VIRC - Get Free Report) shares crossed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $6.14 and traded as high as $6.55. Virco Manufacturing shares last traded at $6.50, with a volume of 30,673 shares changing hands.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Wall Street Zen upgraded Virco Manufacturing from a "sell" rating to a "hold" rating in a research report on Saturday, September 5th. Weiss Ratings restated a "sell (d+)" rating on shares of Virco Manufacturing in a research note on Friday, October 2nd. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Reduce".

Virco Manufacturing Trading Down 0.2%

The company has a quick ratio of 1.43, a current ratio of 2.53 and a debt-to-equity ratio of 0.03. The firm has a market capitalization of $102.44 million, a P/E ratio of -40.62 and a beta of 0.14. The firm's 50-day simple moving average is $6.22 and its 200-day simple moving average is $6.14.

Virco Manufacturing (NASDAQ:VIRC - Get Free Report) last issued its quarterly 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 for the quarter, compared to analyst estimates 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 Announces Dividend

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

Institutional Investors Weigh In On Virco Manufacturing

A number of large investors have recently added to or reduced their stakes in VIRC. IFP Advisors Inc boosted its holdings 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 worth $36,000 after purchasing an additional 2,952 shares in the last quarter. Marquette Asset Management LLC bought a new position in shares of Virco Manufacturing during the 2nd quarter valued at about $42,000. Park Edge Advisors LLC raised its holdings in shares of Virco Manufacturing by 60.9% during the 1st quarter. Park Edge Advisors LLC now owns 29,119 shares of the company's stock valued at $178,000 after buying an additional 11,019 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of Virco Manufacturing by 4.9% during the 1st quarter. Empowered Funds LLC now owns 39,826 shares of the company's stock valued at $244,000 after buying an additional 1,869 shares in the last quarter. Finally, GSA Capital Partners LLP bought a new stake in Virco Manufacturing in the 2nd quarter worth approximately $332,000. Hedge funds and other institutional investors own 30.97% of the company's stock.

About Virco Manufacturing

Virco Manufacturing Corporation designs, manufactures and distributes furniture and equipment for educational environments. Its products include classroom chairs and desks, student and activity tables, computer furniture, classroom storage, mobile carts, folding tables and chairs, and related instructional and institutional furnishings.

The company also supplies products for specialized education and institutional settings, including auditorium and cafeteria seating, activity and collaboration furniture, athletic equipment, and other equipment used in schools and public facilities.

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