Short Interest in Vera Bradley, Inc. (NASDAQ:VRA) Expands By 3,886.3%

Key Points

• Short interest in Vera Bradley, Inc. surged by 3,886.3% in July, reaching a total of 2,320,000 shares shorted, which represents 12.7% of the company's shares.
• Director Andrew Meslow significantly increased his stake by purchasing 253,094 shares at $1.88 each, totaling over $475,000, thus raising his ownership to 300,000 shares.
• Vera Bradley reported an earnings miss for the last quarter, with an EPS of ($0.36), below the expected ($0.13), alongside a decline in revenue and a large net margin loss.

Vera Bradley, Inc. (NASDAQ:VRA - Get Free Report) was the recipient of a large growth in short interest in the month of July. As of July 15th, there was short interest totaling 2,320,000 shares, agrowthof3,886.3% from the June 30th total of 58,200 shares. Approximately12.7% of the company's shares are short sold. Based on an average daily trading volume, of 349,000 shares, the days-to-cover ratio is presently 6.6 days. Based on an average daily trading volume, of 349,000 shares, the days-to-cover ratio is presently 6.6 days. Approximately12.7% of the company's shares are short sold.

Insider Buying and Selling

In other Vera Bradley news, Director Andrew Meslow acquired 253,094 shares of the company's stock in a transaction dated Thursday, June 12th. The shares were bought at an average cost of $1.88 per share, with a total value of $475,816.72. Following the purchase, the director directly owned 300,000 shares of the company's stock, valued at $564,000. This trade represents a 539.58% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 10.50% of the company's stock.

Institutional Investors Weigh In On Vera Bradley

Hedge funds have recently modified their holdings of the business. Peapod Lane Capital LLC lifted its stake in shares of Vera Bradley by 87.6% during the 1st quarter. Peapod Lane Capital LLC now owns 870,156 shares of the textile maker's stock valued at $1,958,000 after buying an additional 406,333 shares in the last quarter. Fund 1 Investments LLC lifted its stake in shares of Vera Bradley by 6.4% during the 4th quarter. Fund 1 Investments LLC now owns 2,783,155 shares of the textile maker's stock valued at $10,938,000 after buying an additional 168,000 shares in the last quarter. Quinn Opportunity Partners LLC purchased a new position in shares of Vera Bradley during the 4th quarter valued at $3,957,000. Sei Investments Co. bought a new position in shares of Vera Bradley during the 4th quarter valued at about $54,000. Finally, Nuveen Asset Management LLC boosted its holdings in shares of Vera Bradley by 37.5% during the 4th quarter. Nuveen Asset Management LLC now owns 48,692 shares of the textile maker's stock valued at $191,000 after purchasing an additional 13,271 shares during the last quarter. Institutional investors own 59.88% of the company's stock.

Vera Bradley Trading Up 6.2%

Shares of NASDAQ:VRA traded up $0.12 on Tuesday, reaching $2.03. 46,438 shares of the company traded hands, compared to its average volume of 281,473. The stock has a market capitalization of $56.67 million, a P/E ratio of -0.64 and a beta of 1.80. Vera Bradley has a 52 week low of $1.71 and a 52 week high of $6.38. The business's 50-day simple moving average is $2.19 and its 200 day simple moving average is $2.47.

Vera Bradley (NASDAQ:VRA - Get Free Report) last released its earnings results on Wednesday, June 11th. The textile maker reported ($0.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.23). Vera Bradley had a negative net margin of 25.52% and a negative return on equity of 11.07%. The business had revenue of $51.65 million for the quarter, compared to analysts' expectations of $53.48 million. During the same quarter in the previous year, the business posted ($0.21) earnings per share. Sell-side analysts expect that Vera Bradley will post -0.25 EPS for the current fiscal year.

Vera Bradley Company Profile

Vera Bradley, Inc, together with its subsidiaries, designs, manufactures, and sells women's handbags, luggage and travel items, fashion and home accessories, and gifts. It operates through three segments: Vera Bradley Direct, Vera Bradley Indirect, and Pura Vida. The company offers bag products, such as totes, crossbodies, satchels, clutches, backpacks, baby bags, and lunch bags; accessories, including ID holders, lanyards, wallets, wristlets, eyewear, scarves, hair accessories, and various technology accessories; bracelets, rings, and necklaces under Pura Vida brand name; and travel products consist of rolling luggage, cosmetics, and travel and packing accessories, as well as travel bags comprising duffel and weekend bags.