Verso Corporation (NYSE:VRS) shares fell to a low of $11.61 before closing at $11.97. Intraday shares traded counted 0.17 million, which was 43.24% higher than its 30-day average trading volume of 300.61K. VRS’s previous close was $11.63 while the outstanding shares total 35.11M. The firm has a beta of 1.94, a 12-month trailing P/E ratio of 3.98. The stock’s Relative Strength Index (RSI) is 44.32, with weekly volatility at 4.40% and ATR at 0.70. The VRS stock’s 52-week price range has touched low of $9.61 and a $19.49 high. The stock traded higher over the last trading session, gaining 2.92% on 07/06/20.
Investors have identified the Paper & Paper Products company Verso Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $409.97 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Verso Corporation (VRS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For VRS, the company has in raw cash 276.0 million on their books with 1.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 754000000 million total, with 210000000 million as their total liabilities.
VRS were able to record -99.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 234.0 million. In cash movements, the company had a total of -77.0 million as operating cash flow.
Potential earnings growth for Verso Corporation (VRS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Verso Corporation recorded a total of 471.0 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -35.67% coming in sequential stages and their sales for the third quarter reducing by -24.63%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 427.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 44.0 million. This allows shareholders to hold on to 35.11M with the revenue now reading 1.53 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.38 cents a share).
Having a look at the company’s valuation, the company is expected to record -0.19 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on VRS sounds very interesting.
Is the stock of VRS attractive?
In related news, President & CEO, St. John Adam sold 18,066 shares of the company’s stock in a transaction that recorded on May 20. The sale was performed at an average price of 13.89, for a total value of 250,937. As the sale deal closes, the SVP and CFO, Campbell Allen James now bought 700 shares of the company’s stock, valued at 8,260. Also, Director, Kirt Jeffrey E bought 10,000 shares of the company’s stock in a deal that was recorded on Mar 12. The shares were price at an average price of 11.45 per share, with a total market value of 114,500. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.70%.