Vonage Holdings Corp. (VG): Street Finally Waking Up


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Vonage Holdings Corp. (NASDAQ:VG). The institutional investor has increased its shareholding in the Communication Services company by 1.46% to 24.36 million shares with purchase of 0.35 million shares. This fresh investment now brings its stake to 9.93% valued currently at $245.03 million. In addition, Janus Capital Management LLC raised its holdings by 3.23 million to 12.16 million shares. And Bank of America, NA (Private Bank. has lifted its position by 342.65% or 6.54 million shares – to 8.45 million shares.

    With over 1.08 million Vonage Holdings Corp. (VG) shares trading Wednesday and a closing price of $11.72 on the day, the dollar volume was approximately $12.7 million. The shares have shown a negative weekly performance of -0.87% and its price on 07/28/20 gained nearly 2.36%. Currently, there are 243.63M common shares owned by the public and among those 231.36M shares have been available to trade.

    Incidentally, analysts’ outlook for the Vonage Holdings Corp. stock is 1.70 for the next 12 months.

    Insiders at the company have transacted a total of 147 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 83 of these insider trades were purchases, accounting for 4,198,987 shares. Insider sales of the common stock occurred on 64 occasions, with total insider shares sold totaling 2,828,453 shares.

    The top 3 mutual fund holders in Vonage Holdings Corp. are iShares Core S&P Small Cap ETF, Janus Henderson Triton Fund, and First Trust Dow Jones Internet In. iShares Core S&P Small Cap ETF owns 11.42 million shares of the company’s stock, all valued at over $114.86 million. Janus Henderson Triton Fund bought 1.73 million shares to see its total holdings expand to 9.18 million shares valued at over $92.35 million and representing 3.74% of the shares outstanding. First Trust Dow Jones Internet In bought 43308.0 shares to bring its total holdings to over 7.84 million shares at a value of $78.86 million. First Trust Dow Jones Internet In now owns shares totaling to 3.20% of the shares outstanding.

    Shares of Vonage Holdings Corp. (NASDAQ: VG) opened at $11.50, up $0.05 from a prior closing price of $11.45. However, the script later closed the day at $11.72, up 2.36%. The company’s stock has a 5-day price change of -0.87% and 36.47% over the past three months. VG shares are trading 54.52% year to date (YTD), with the 12-month market performance down to -7.88% lower. It has a 12-month low price of $4.18 and touched a high of $13.75 over the same period. Currently, 1.08 million shares have been traded, compared to an average intraday trading volume of 3.21 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.75%, 14.60%, and 34.07% respectively.

    Institutional ownership of Vonage Holdings Corp. (NASDAQ: VG) shares accounts for 93.20% of the company’s 243.63M shares outstanding. Mutual fund holders own 40.51%, while other institutional holders and individual stakeholders account for 49.45% and 20.81% respectively.

    It has a market capitalization of $2.84B and a beta (3y monthly) value of 0.56. The earnings-per-share (ttm) stands at -$0.09. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.52% over the week and 3.62% over the month.

    Analysts forecast that Vonage Holdings Corp. (VG) will achieve an EPS of $0.04 for the current quarter, $0.04 for the next quarter and $0.16 for 2021. The lowest estimate earnings-per-share for the quarter is $0.02 while analysts give the company a high EPS estimate of $0.08. Comparatively, EPS for the current quarter was $0.08 a year ago. Earnings per share for the fiscal year are expected to decrease by -156.10%, and 0.00% over the next financial year. EPS should grow at an annualized rate of 10.00% over the next five years, compared to -20.90% over the past 5-year period.

    Looking at the support for the VG, a number of firms have released research notes about the stock. Rosenblatt stated their Neutral rating for the stock in a research note on July 28, 2020, with the firm’s price target at $12. Jefferies coverage for the Vonage Holdings Corp. (VG) stock in a research note released on June 09, 2020 offered a Hold rating with a price target of $11. Morgan Stanley was of a view on March 25, 2020 that the stock is Overweight, while Dougherty & Company gave the stock Buy rating on February 19, 2020, issuing a price target of $12.50- $16.50. Needham on their part issued Buy rating on December 23, 2019.


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