Vonage Holdings Corp. (VG) Stock: A Good Pick In The technology Industry?

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Vonage Holdings Corp. (VG) is headed up in the market in today’s trading session. The stock, one that is focused on the technology sector, is presently priced at $9.60 after climbing -4.95% so far in today’s session. When it comes to technology stocks, there are quite a few factors that have the potential to cause price movement in the market. One of the most common is news. Here are the recent stories associated with VG:

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Mar-20-19 06:30AM Launch of CX Cloud Express Extends Vonage Business Cloud with Native Contact Center Offering
Mar-19-19 08:45AM Vonage Launches Number Programmability
08:30AM Vonage brings number programmability to its business service
Mar-15-19 05:00PM Vonage Appoints New Independent Director To Its Board
07:14AM Can Vonage Holdings Corp. (NYSE:VG) Improve Its Returns?

Nonetheless, when making a decision to invest, prospective investors should look at much more than news, this is especially the case in the ever changing technology industry. Here’s what’s happing when it comes to Vonage Holdings Corp..

Returns That VG Investors Have Seen

Although a move up on a single session, like the move that we’re seeing from Vonage Holdings Corp. may lead to excitement in some investors, a single session gain alone should not be the basis of a decision to, or not to, invest in a stock. It is always smart to take a look at trends further out than a single trading day. As it relates to VG, here are the movements that investors have experienced:

  • Past Seven Days – Over the last 5 trading sessions, VG has generated a change in price that amounts to -5.97%.
  • Monthly – The monthly ROI from Vonage Holdings Corp. works out to -1.54%.
  • Past 3 Months – Over the last 3 months, the company has produced a ROI that works out to 7.02%
  • Bi-Annually – Throughout the last six months, investors have seen a change of -27.87% from the stock.
  • Year To Date – Since the the last trading session of last year VG has produced a return on investment of 9.97%.
  • Full Year – Lastly, in the past full year, investors have seen a change that works out to -12.49% from VG. In this period, the stock has sold at a high price of -34.83% and a low price of 21.29%.

Rations That You Should Look Into

Digging into various key ratios associated with a stock can give traders an understanding of how dangerous and/or rewarding a pick may be. Below are a few of the key ratios to think about when digging into VG.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the amount of short interest. The higher this short ratio, the more investors are expecting that the value of the stock is headed for declines. Across the sector, strong technology stocks can have a lower short ratio. However, we tend to see a lot of short squeezes in the sector. Nonetheless, in relation to Vonage Holdings Corp., it’s short ratio clocks in at 2.95.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Basically, they measure If a company is able to cover its debts when they mature with only current assets or quick assets. Because in tech, companies rely on continued investor support as they work to bring new technologies to market, these ratios can be upsetting. However, some better companies in the technology sector come with good quick and current ratios. In terms of VG, the quick and current ratios add up to 0.60 and 0.60 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets that are owned by the company. In this particular case, the book to share value ratio is 2.24.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the price of shares. In the case of VG, the cash to share value ratio comes to 0.

What Institutions And Insiders Think Of Vonage Holdings Corp.

One thing that I’ve come to understand so far in my short period here has been that smart investors tend to follow the moves made by big money. That is to say, investors that want to keep their investments relatively safe will pay close attention to moves made by institutional investors as well as those on the inside. With that said, is big money flowing when it comes to VG? Here’s what’s happening:

Institutions own 87.60% of the company. Institutional interest has moved by -0.43% over the past three months. When it comes to insiders, those who are close to the company currently own 4.40% percent of VG shares. Institutions have seen ownership changes of an accumulative -17.50% over the last three months.

Analyst Opinions With Regard To Vonage Holdings Corp.

Although it’s never a smart idea to blindly follow the opinions of analysts, it is a good idea to use their opinions when validating your own opinions when it comes to making investment decisions in the tech space. Below you’ll find the recent moves that we have seen from analysts when it comes to VG.

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Mar-12-19 Initiated Guggenheim Neutral
Jan-07-19 Reiterated Needham Buy $15 → $14
Jan-04-19 Initiated Stephens Overweight
Nov-29-18 Reiterated Dougherty & Company Buy $19
Sep-24-18 Resumed William Blair Outperform

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.25. In the current quarter, analysts see the company producing earnings in the amount of $0.02. Over the last 5 years, VG has generated revenue in the amount of $4.80% with earnings coming in at 1.10%. On a quarter over quarter basis, earnings have seen movement of -147.10% and revenue has seen movement of 7.80%.

What You Need To Know About Share Counts

Traders tend to have an interest in the counts of shares both available and outstanding. When it comes to Vonage Holdings Corp., there are currently 238.45M and there is a float of 225.22M. This means that out of the total of 238.45M shares of VG currently in existence today, 225.22M are able to trade hands on the public market.

I also like to pay attention to the short percent. After all, if a large portion of the float is shorted, the overall opinion among investors is that the equity is going to fall. As far as it relates to VG, the percentage of the float that is currently being sold short sits at 3.68%. Most investors would say that a high short percent of the float is anything over 40%. Through my work, I have found that a short percent of the float over 26% is probably going to be a play that comes with hefty risk.

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