Gut Call On Vocera Communications, Inc. (VCRA): Now It’s Really Up Too Much

Vocera Communications, Inc. (NYSE:VCRA) is one of the hottest stocks trading today on the U.S. Markets as the company shares are 3.93% or 0.91 points higher from last closing price of $23.17, reaching $24.08 at last check. Any clue why there is so much of action in the VCRA stock? The share price has risen in 4 of the last 5 days and is down -22.53% 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 3,930 shares, and in total 330430 shares valued at $7.957 million were seen changing hands compared with 326500 shares valued at $7.565 million 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 VCRA stock.

Vocera Communications, Inc. (VCRA) shares have notched a 3-month decline of about -22.53%, but has still tumbled -41.12% year to date. By comparison, the stock sank -31.97% over the past 12 months, while it slipped -4.57% over the 1 month. The company’s market cap is around $732.87M, with its short interest ratio standing at 21.8%.

In the current trading session for VCRA, the stock witnessed two major price actions, it rose to a high of $24.14 and was down as much as $23.08 at one point. The high recorded is very low when compared to their 52-week high which is $21.14. The 52-week high is now at -43.35 distance from current price. Their recent low of $42.6 represents a 14.14% 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 VCRA is $34.18, this is below 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 Vocera Communications, Inc. earned $-0.58 per share in the trailing 12 months and has a P/E ratio of -41.52. 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 16.65 and lower compared to the sector’s average of 29.01. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. VCRA also has P/S multiple of 4.31. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 0.2x.

VCRA‘s last price was down -25.5% as compared to the average trading price of 50 days recorded at $32.32 while enlarging the period to 200 trading days, the average closing price was $25.91. At present, there are 31.63 million in the total number of common shares owned by the public and among those 30.84 million shares have been available to trade. The percentage of shares being held by the company management was 2% while institutions stake was 0%. The company has generated negative returns on equity over the last 12 months (-11.4%). It managed to keep its gross profit margin at 61.7% over the past 12 months.

When assessing the full upside of the VCRA stock, there is another set of technicals that should be looked into and considered. Its 3.32% gain from moving average of $23.31 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0.34 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 Vocera Communications, Inc. — 8 analysts rate the stock as a buy with another 0 rating it strong buy. There are 2 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 $34.3333 on shares of Vocera Communications, Inc. (NYSE:VCRA), which corresponds to 43.23% upside potential than its current market price of $24.08 and implies potential despite the recent advance in the price. However, their current target price has fallen from $35.4444 a month ago and is down handily from the consensus target of $38.7778 a quarter ago.

In the last five years, the EPS of the company has been roughly 5.4%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 15%. The revenue of the company has risen at an average annualized rate of about 11.9 over the last five years. The company recently recorded an increase of 4.9%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards VCRA stock. Nomura Holdings Inc. changed position in the company and now owns 110,000 shares worth $2,648,800, SEC documents show. Perceptive Advisors LLC shored up assets in the stock as 50000 shares have been purchased, increasing its stake by 288.8% to 194,400 shares which are currently valued at $4,681,152. In addition, Royal Bank of Canada recently reported that it now owns 118,575 shares making a total of $2,855,286 based on the recent price. This refelects a change of 35.8% in their ownership.