Short Interest in Vera Bradley, Inc. (NASDAQ:VRA) Drops By 20.9%

Key Points

• Short interest fell 20.9% in March to 1,111,912 shares (about 4.5% of shares sold short), leaving a days-to-cover ratio of 3.7 and indicating a notable reduction in bearish positioning.
• Institutional ownership is high at 59.88% with several funds increasing or initiating stakes (Empowered Funds, Jane Street, XTX, Marshall Wace, Jump Financial); analysts are mixed — Wall Street Zen upgraded to "buy" while the consensus rating is "Reduce," and the company, despite a quarterly EPS beat, remains unprofitable with negative margins and a forecasted -0.25 EPS for the year.

Vera Bradley, Inc. (NASDAQ:VRA - Get Free Report) saw a large decline in short interest during the month of March. As of March 31st, there was short interest totaling 1,111,912 shares, a decline of 20.9% from the March 15th total of 1,405,998 shares. Approximately 4.5% of the company's shares are sold short. Based on an average daily volume of 299,060 shares, the days-to-cover ratio is currently 3.7 days.

Hedge Funds Weigh In On Vera Bradley

Several large investors have recently made changes to their positions in VRA. Empowered Funds LLC lifted its holdings in shares of Vera Bradley by 7.9% in the 1st quarter. Empowered Funds LLC now owns 163,636 shares of the textile maker's stock worth $368,000 after acquiring an additional 12,021 shares during the last quarter. Jane Street Group LLC lifted its holdings in shares of Vera Bradley by 149.9% in the 1st quarter. Jane Street Group LLC now owns 57,041 shares of the textile maker's stock worth $128,000 after acquiring an additional 34,212 shares during the last quarter. XTX Topco Ltd acquired a new position in shares of Vera Bradley in the 2nd quarter worth approximately $126,000. Marshall Wace LLP acquired a new position in shares of Vera Bradley in the 2nd quarter worth approximately $363,000. Finally, Jump Financial LLC purchased a new stake in Vera Bradley during the 2nd quarter worth approximately $28,000. 59.88% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. Wall Street Zen upgraded shares of Vera Bradley from a "hold" rating to a "buy" rating in a report on Saturday, April 11th. Zacks Research upgraded shares of Vera Bradley from a "strong sell" rating to a "hold" rating in a report on Tuesday, February 10th. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Reduce".

Vera Bradley Stock Performance

Shares of VRA stock opened at $3.70 on Thursday. The firm's 50 day moving average price is $3.07 and its 200-day moving average price is $2.65. Vera Bradley has a one year low of $1.39 and a one year high of $4.02. The firm has a market cap of $103.49 million, a P/E ratio of -2.15 and a beta of 1.59.

Vera Bradley (NASDAQ:VRA - Get Free Report) last issued its quarterly earnings data on Thursday, March 12th. The textile maker reported $0.09 EPS for the quarter, topping the consensus estimate of $0.01 by $0.08. Vera Bradley had a negative net margin of 17.74% and a negative return on equity of 12.00%. The firm had revenue of $84.89 million for the quarter, compared to analyst estimates of $79.73 million. As a group, research analysts predict that Vera Bradley will post -0.25 EPS for the current fiscal year.

Vera Bradley Company Profile

Vera Bradley, Inc NASDAQ: VRA is a lifestyle and accessories designer specializing in colorful, patterned handbags, luggage, travel accessories and coordinated home décor. Founded in 1982 by Barbara Bradley Baekgaard and Patricia R. Miller, the company first gained recognition for its quilted cotton bags sold at craft shows before expanding into an established fashion brand. Headquartered in Fort Wayne, Indiana, Vera Bradley has built a reputation for distinctive prints and functional design aimed primarily at women's casual and travel needs.

The company's product portfolio includes day bags, weekenders, backpacks, wallets, and organizational cases, as well as an expanding range of travel gear such as rolling luggage and travel pouches.

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