How To Play The 5.58% Rally In Veru Inc. (VERU)

Veru Inc. (NASDAQ:VERU) is trending higher in the market today as the company shares are trading 5.58% or 0.081 points up from last closing price of $1.45, reaching $1.5309 at last check. Any clue why there is so much of action in the VERU stock? The share price has risen in 5 of the last 5 days and is down -5.23% over the past week. It will be exciting to see whether the stock manages to continue increasing or take a minor break for the next few days. The move came on solid volume too with far more shares changing hands than in a normal session. Trading activity as of this writing strengthened by 178,739 shares, and in total 225439 shares valued at $345125 were seen changing hands compared with 46700 shares valued at $67715 recorded at the previous session. You should take into consideration that a greater volume on higher prices causes bullish signal for the market. It shows the sentiment is in an uptrend and more and more traders want to enter in the VERU stock.

Veru Inc. (VERU) shares have notched a 3-month decline of about -5.23%, but has still advanced 3.57% year to date. By comparison, the stock sank -23.28% over the past 12 months, while it slipped -1.36% over the 1 month. The company’s market cap is around $98.28M, with its short interest ratio standing at 1.13%.

In the current trading session for VERU, the stock witnessed two major price actions, it rose to a high of $1.54 and was down as much as $1.45 at one point. The high recorded is very low when compared to their 52-week high which is $1.18. The 52-week high is now at -35.81 distance from current price. Their recent low of $2.37 represents a 28.93% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for VERU is $6.38, this is above the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of Veru Inc. earned $-0.39 per share in the trailing 12 months and has a P/E ratio of -3.93. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 29.3 and lower compared to the sector’s average of 32.55. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. VERU also has P/S multiple of 5.29. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 6.59x.

The company recorded an interesting insider sale transaction by the Insider on May 01, 2019. A Securities and Exchanges Commission filings show that Mitchell Shuster Steiner sold a total of 20,000 VERU shares that day for a sum of around $28,600. Veru Inc. (VERU) insiders have acquired 54,081 shares in the stock within the past three months. In total, individual insiders traded 154,081 shares in the business, which makes up 40.306% of 382,281 shares that were traded over a year. In the past 12 months, insiders have purchased 205,281 shares while the seller parted with 177,000 shares.

VERU‘s last price was down -1.67% as compared to the average trading price of 50 days recorded at $1.56 while enlarging the period to 200 trading days, the average closing price was $1.45. At present, there are 67.78 million in the total number of common shares owned by the public and among those 44.88 million shares have been available to trade. The percentage of shares being held by the company management was 14.7% while institutions stake was 8.8%. The company has generated negative returns on equity over the last 12 months (-60.8%). It managed to keep its gross profit margin at 61.6% over the past 12 months.

When assessing the full upside of the VERU stock, there is another set of technicals that should be looked into and considered. Its 7.39% gain from moving average of $1.43 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0.87 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of Veru Inc. — 5 analysts rate the stock as a buy with another 0 rating it strong buy. There are 0 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $5.125 on shares of Veru Inc. (NASDAQ:VERU), which corresponds to 239.40% upside potential than its current market price of $1.5309 and implies potential despite the recent advance in the price. However, their current target price has fallen from $5.125 a month ago and is down handily from the consensus target of $7.25 a quarter ago.

In the last five years, the EPS of the company has been roughly -23.6%. Though the percentage looks disappointing, extra headwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will decrease annually by 0%. The revenue of the company has retreated at an average annualized rate of about -12.8 over the last five years. The company recently recorded an increase of 146.2%, but this figure is rather attractive.

Let’s briefly check the hedge fund interest towards VERU stock. Virtu Financial LLC added position in the company after it grew 50% or 43,183 shares of its common stock. The hedge fund now owns 64,774 shares worth $99,163, SEC documents show. Geode Capital Management LLC shored up assets in the stock as 159822.8 shares have been purchased, increasing its stake by 34.9% to 215,601 shares which are currently valued at $330,064. In addition, Geode Capital Management LLC recently reported that it now owns 215,601 shares making a total of $330,064 based on the recent price. This refelects a change of 34.9% in their ownership.