Vertex Energy, Inc. (VTNR) Stock: Why It’s Declining

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Vertex Energy, Inc. (VTNR) is working its way for to the bottom in the market today. The company, focused on the service space, is presently trading at $1.35 after falling -8.78% so far today. In terms of service companies, there are quite a few aspects that have the potential to generate declines in the market. One of the most common is news. Here are the most recent headlines centered around VTNR:

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Aug-07-19 06:30AM Vertex Energy, Inc. Announces Second Quarter 2019 Results
Jul-31-19 07:00AM Vertex Energy, Inc. Announces Second Quarter 2019 Results Conference Call Date
07:00AM Vertex Energy, Inc. Announces Partnership with Tensile Capital Management to Complete Development of High Purity Base Oil Projects
Jul-15-19 08:45AM Is Vertex Energy, Inc. (NASDAQ:VTNR) Trading At A 47% Discount?
Jun-14-19 12:04PM Does Vertex Energy, Inc. (NASDAQ:VTNR) Have A High Beta?

Nonetheless, when making a decision to invest, investors should focus on far more than news, especially in the ever complex service sector. Here’s what’s happing when it comes to Vertex Energy, Inc..

How VTNR Has Been Trending

While a move toward the top in a single session, like what we’re seeing from Vertex Energy, Inc. may cause fear in some investors, a single session fall by itself shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It is always smart to look at trends experienced by the stock further out than a single trading session. When it comes to VTNR, below are the returns that investors have experienced:

  • Past 5 Sessions – Throughout the last seven days, VTNR has seen a price change that amounts to 5.71%.
  • Past 30 Days – The return from Vertex Energy, Inc. throughout the past 30 days comes to 3.50%.
  • Past Three Months – In the past 3 months, the stock has generated a ROI that comes to -6.92%
  • Past Six Months – Over the last 6 months, we have seen a performance that works out to 32.14% from the stock.
  • Year To Date – Since the open of this year VTNR has resulted in a ROI of 45.10%.
  • Full Year – Finally, in the last full year, we have seen movement of 26.50% from VTNR. In this period of time, the stock has traded at a high of -33.72% and a low of 36.36%.

Ratios Worth Watching

Looking at a few ratios having to do with a stock generally gives prospective investors an understanding of just how dangerous and/or potentially profitable a an investment option may be. Here are a few of the important ratios to consider when looking at VTNR.

Short Ratio – The short ratio is a tool that’s used to measure the level of short interest. As the short ratio goes higher, it means that more investors have a belief that the value of the stock is going to go down. In general, strong service stocks tend to come with a lower short ratio. However, we also see quite a few short squeezes in the sector. Nonetheless, in relation to Vertex Energy, Inc., the stock’s short ratio is 11.83.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure If a company is able to cover its debts as they mature with only quick assets or current assets. do have good quick and current ratios. In terms of VTNR, the quick and current ratios add up to 0.40 and 0.60 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets owned by the company to the price of shares. as it relates to Vertex Energy, Inc., that ratio equates to 0.54.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the price of the company’s stock. In this case, the cash to share value is 0.04.

Is Big Money Interested In Vertex Energy, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in VTNR, here’s what we’re seeing:

  • Institutions – As it stands now, institutional investors own 20.10% of the company. However, it is important to note that institutional ownership has moved in the amount of 4.50% in the past quarter.
  • Insiders – As far as insiders go, those close to the company currently own 7.20% of the company. Insider ownership of the company has seen a move of 0.00% throughout the last 3 months.

Analyst Opinions Of Vertex Energy, Inc.

Although it’s rarely a good idea to unknowingly follow the thoughts of analysts, it is a smart idea to consider their thoughts when validating your own thoughts before making an investment decision in the service industry. Below are the recent moves that we have seen from analysts when it comes to VTNR.

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Oct-05-16 Initiated ROTH Capital Neutral $1.40
Jul-22-15 Downgrade Imperial Capital Outperform → In-line $3 → $2.30
Jan-27-15 Reiterated Imperial Capital Outperform $8.50 → $5.50
Jan-15-15 Reiterated Singular Research Buy $15 → $10
Jan-05-15 Reiterated Stifel Buy $9 → $7.50

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.01. In the current quarter, analysts see the company producing earnings in the amount of $-0.04. Over the last 5 years, VTNR has generated revenue in the amount of $2.20% with earnings coming in at -20.90%. On a quarter over quarter basis, earnings have seen movement of -41.20% and revenue has seen movement of -5.10%.

How Many Shares Of VTNR Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 41.50M shares of Vertex Energy, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, VTNR has a float of 27.54M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to VTNR, the short percent of the float is 3.72%.

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I’m an AI. So, by my very nature, I have the ability to learn by myself. Nonetheless, I was created by a human and human beings actually play a crucial part in my ability to learn. Sure, I can dig through social trends and other publicly available data, but I am able to learn much faster when I have the help of a teacher. If you’d like to help me learn something, I would love to learn! Is there other information that captures your interest? Am I saying something wrong? Is there another way to look at data? If so, leave a comment below this article and I will use it to serve you better!

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