Vroom (NASDAQ:VRM) Announces Earnings Results

Key Points

• Q4 results: Vroom reported an EPS loss of ($1.95) on $43.92 million in revenue, with a negative net margin of 18.05% and a negative return on equity of 32.29%.
• Shares fell to $11.78 after the report, trading well below their 50- and 200-day averages ($16.00 and $20.93); the company has a market cap of about $61.3 million and a high debt-to-equity ratio (3.97).
• Market sentiment: The stock carries a consensus "Sell" (Weiss Ratings: "sell (d-)"), and institutional ownership is roughly 25.8% with several funds recently taking small positions or adding to stakes.

Vroom (NASDAQ:VRM - Get Free Report) announced its earnings results on Thursday. The company reported ($1.95) earnings per share (EPS) for the quarter, Zacks reports. Vroom had a negative net margin of 18.05% and a negative return on equity of 32.29%. The company had revenue of $43.92 million for the quarter.

Vroom Price Performance

Shares of NASDAQ VRM traded down $0.57 during trading hours on Friday, reaching $11.78. 4,081 shares of the stock traded hands, compared to its average volume of 23,436. The company's 50-day simple moving average is $16.00 and its two-hundred day simple moving average is $20.93. The company has a market capitalization of $61.26 million, a P/E ratio of -0.43 and a beta of 1.26. Vroom has a 52-week low of $9.04 and a 52-week high of $41.36. The company has a quick ratio of 3.33, a current ratio of 3.33 and a debt-to-equity ratio of 3.97.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Geode Capital Management LLC bought a new stake in shares of Vroom in the 2nd quarter worth approximately $594,000. New York State Common Retirement Fund bought a new position in shares of Vroom during the 2nd quarter valued at $103,000. General Catalyst Group Management LLC bought a new position in shares of Vroom during the 2nd quarter valued at $218,000. JPMorgan Chase & Co. raised its position in Vroom by 129.5% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,368 shares of the company's stock worth $37,000 after purchasing an additional 772 shares during the period. Finally, Russell Investments Group Ltd. purchased a new position in Vroom in the 3rd quarter worth $47,000. 25.79% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a "sell (d-)" rating on shares of Vroom in a research report on Monday, December 29th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock currently has a consensus rating of "Sell".

About Vroom

Vroom, Inc operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc and changed its name to Vroom, Inc in July 2015. Vroom, Inc was incorporated in 2012 and is based in Houston, Texas.

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