Short Interest in Vera Bradley, Inc. (NASDAQ:VRA) Rises 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 target of a significant increase in short interest during the month of July. As of July 15th, there was short interest totaling 2,320,000 shares, anincreaseof3,886.3% from the June 30th total of 58,200 shares. Based on an average trading volume of 349,000 shares, the days-to-cover ratio is presently 6.6 days. Currently,12.7% of the company's stock are sold short. Currently,12.7% of the company's stock are sold short. Based on an average trading volume of 349,000 shares, the days-to-cover ratio is presently 6.6 days.

Vera Bradley Trading Up 0.5%

Vera Bradley stock traded up $0.01 during midday trading on Friday, hitting $1.94. The stock had a trading volume of 198,839 shares, compared to its average volume of 213,480. The stock has a market cap of $54.18 million, a P/E ratio of -0.61 and a beta of 1.80. Vera Bradley has a 12 month low of $1.71 and a 12 month high of $6.48. The business has a fifty day moving average price of $2.19 and a 200 day moving average price of $2.50.

Vera Bradley (NASDAQ:VRA - Get Free Report) last announced its quarterly earnings data on Wednesday, June 11th. The textile maker reported ($0.36) earnings per share 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 firm had revenue of $51.65 million during the quarter, compared to the consensus estimate of $53.48 million. During the same period in the prior year, the firm earned ($0.21) earnings per share. On average, equities analysts anticipate that Vera Bradley will post -0.25 EPS for the current fiscal year.

Insider Activity

In other Vera Bradley news, Director Andrew Meslow bought 253,094 shares of the company's stock in a transaction dated Thursday, June 12th. The shares were acquired at an average cost of $1.88 per share, with a total value of $475,816.72. Following the completion of the transaction, the director owned 300,000 shares in the company, valued at $564,000. The trade was a 539.58% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 12.10% of the company's stock.

Hedge Funds Weigh In On Vera Bradley

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Peapod Lane Capital LLC boosted its stake in Vera Bradley by 87.6% in the first quarter. Peapod Lane Capital LLC now owns 870,156 shares of the textile maker's stock valued at $1,958,000 after acquiring an additional 406,333 shares during the period. Fund 1 Investments LLC boosted its stake in Vera Bradley by 6.4% in the fourth quarter. Fund 1 Investments LLC now owns 2,783,155 shares of the textile maker's stock valued at $10,938,000 after acquiring an additional 168,000 shares during the period. Quinn Opportunity Partners LLC acquired a new position in Vera Bradley in the fourth quarter valued at approximately $3,957,000. Sei Investments Co. acquired a new position in Vera Bradley in the fourth quarter valued at approximately $54,000. Finally, Nuveen Asset Management LLC boosted its stake in Vera Bradley by 37.5% in the fourth quarter. Nuveen Asset Management LLC now owns 48,692 shares of the textile maker's stock valued at $191,000 after acquiring an additional 13,271 shares during the period. 59.88% of the stock is currently owned by institutional investors and hedge funds.

About Vera Bradley

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.