Shares of Vera Bradley, Inc. (NASDAQ:VRA) crossed above their 200-day moving average during trading on October 8, 2023. The stock, which has a 200-day moving average of $2.22, reached a high of $2.22 before closing at $2.20. A total of 282,022 shares changed hands on that day, indicating a notable trading volume.
Analysts have recently reassessed their outlook on Vera Bradley’s stock. Weiss Ratings reaffirmed a “sell (D-)” rating on the shares, while Wall Street Zen downgraded the stock from a “hold” to a “sell” rating in a report issued on October 26, 2023. Presently, two analysts suggest a “hold” rating, while one has issued a “sell” rating. According to data from MarketBeat.com, the consensus rating for the company stands at “reduce,” reflecting a cautious sentiment among market observers.
Recent Earnings Performance
On December 11, 2023, Vera Bradley released its quarterly earnings report, revealing a loss of ($0.04) earnings per share (EPS). This figure was an improvement over analysts’ consensus estimates of ($0.11), surpassing expectations by $0.07. The company generated revenues of $62.25 million, exceeding analyst forecasts of $61.69 million. Despite this positive revenue performance, Vera Bradley reported a negative return on equity of 18.30% and a negative net margin of 34.23%. In the same quarter of the previous year, the company reported a loss of ($0.27) EPS. Analysts project that Vera Bradley will post an EPS of ($0.25) for the current year.
Insider Trading and Institutional Activity
In related news, Andrew Meslow, a director of Vera Bradley, purchased 50,000 shares of the company on December 15, 2023, at an average price of $1.93 per share, totaling $96,500. Following this transaction, Meslow holds 600,000 shares, valued at approximately $1,158,000, marking a 9.09% increase in his position. This trade was disclosed in a filing with the SEC, which is accessible on their official website. Corporate insiders control 12.10% of Vera Bradley’s stock.
Several institutional investors have adjusted their positions in Vera Bradley recently. Williams & Novak LLC increased its stake in the company by 48.3% during the second quarter, now owning 20,170 shares valued at $45,000. Meanwhile, SummerHaven Investment Management LLC raised its stake by 5.7%, owning 138,083 shares worth $305,000 after acquiring an additional 7,478 shares. Other firms, including Catalyst Funds Management Pty Ltd and Pinnacle Wealth Planning Services Inc., also established new positions in the company during this period.
As of now, institutional investors collectively hold 59.88% of Vera Bradley’s stock, indicating significant interest from larger investment entities.
Company Overview
Founded in 1982 by Barbara Bradley Baekgaard and Patricia R. Miller, Vera Bradley, Inc. designs lifestyle accessories, primarily known for its colorful handbags, luggage, and home décor. Headquartered in Fort Wayne, Indiana, the company initially found success selling quilted cotton bags at craft shows. Today, it has evolved into a recognized fashion brand with a diverse product line that includes day bags, backpacks, wallets, and travel gear.
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