Vonage Holdings Corp. (VG) Insider Transactions Are Uncovering Many Things

On November 29, 2019, Vonage Holdings Corp. (NYSE:VG) shares gained 1.15% or 0.09 points to close at $7.91 with a thin trading volume of 1.459 million shares. It opened the trading session at $7.8, the shares rose to $7.96 and dropped to $7.76, the range by which the price of stock traded the whole day. The company now has a market cap of $1.86 billion and currently has 234.83 million outstanding shares. Vonage Holdings Corp. (VG) stock has plunged -19.53 percent of market value in 21 trading days.

VG stock’s trailing 3-year beta is 0.12, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.1 share in the trailing 52 weeks. The stock’s value fallen -9.39 percent year to date (YTD) compared to a decline of -26.14 percent in 52 week’s period. The firm’s shares are still trading -42.47 percent below its 1-year high of $13.75 and 10.47 percent up from 52-week low of $7.16. The average consensus ranking on the company is 1.7, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Vonage Holdings Corp. (VG) is most likely going to rise 79.27 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $18-month high price target. This represents a whopping 127.56 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $14, which means a return possibility of 76.99 percent in comparison with the closing price of the stock of $7.91 on November 29. The lowest price set for the stock is $9.5 — just above 20.1 percent from VG share price now.

Past records have indicated that shares in Vonage Holdings Corp. rose on 19 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of VG’s Q4 earnings on February 14. Analysts are predicting revenue to climb 11.6 percent to $306M in the financial fourth quarter, while EPS will soar by about 25 percent to $0.05 per share. In the last quarter, it earnings of $0.08 per share came better than the $0.03444, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $273.8M, missing the $274.64M analysts had expected. Earnings are seen to rise by -8.8 percent this year, 3.95 percent in the coming year and the trend continues by 10 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Vonage Holdings Corp. (NYSE:VG) and observe the pattern. The earliest insider trade happened on 11/01/2019. Citron Jeffrey A parted with a total of 250 thousand shares of the firm at average share price of $9.78. The total amount for the sale was set at $2.45 million. On completing this exchange, the Director account balance was 9.67 million shares. The stock lost -19.12 percent from that insider sale. On 09/11/2019, Citron Jeffrey A, Director, did a sale of 400 thousand shares at a price of $12.55 per share. This got rid of 5.02 million shares from the insider’s fortune and the stock experienced a -36.97 percent retreat in price since the news became public. This exchange saw 9.92 million shares get out from the Director account.

On 08/21/2019, SVP, Controller & PAO LEVI DAVID recorded a sale transaction valued at $54.99 thousand. The sale at $13.37 a share has eliminated 4.11 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -40.84 percent decrease since the transaction reporting date. The company insider is left with 27.48 thousand shares remaining in the account. MASAREK ALAN, who works as CEO at the company, performed a sale of 559.16 thousand shares in a transaction worth $7.4 million. The disposal recorded on 08/16/2019 was priced at $13.23 per share. The stock price plunged -40.21 percent since the transaction. MASAREK ALAN currently holds a stake of 528.8 thousand in VG stock which is worth $4.18 million after the insider selling.

The stock is lingering around the initial support level of $7.79. After this, the following support is at the zone of $7.68. Up until the time the VG stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 39.19 on the daily chart, and this may be a cause for comfort. In case the price goes below $7.68 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $7.99 level may cause a pull-back move approaching $8.08 mark.

The industry VG deals with has an average P/E of 25. Its P/B ratio is standing at 3.6X compared to the 1.6 industry average. It is additionally sporting a 1.7 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.3. Vonage Holdings Corp. has a 57.7% gross profit margin, with its operating margin around 0.8%. Alongside this, the company’s net profit margin currently stands at -2.1%.