VEON Ltd. (VEON): Street Finally Waking Up


    Exor Investments (UK) LLP recently announced the acquisition of new stake in VEON Ltd. (NASDAQ:VEON). The institutional investor has increased its shareholding in the Communication Services company by 41.78% to 53.11 million shares with purchase of 15.65 million shares. This fresh investment now brings its stake to 3.02% valued currently at $89.76 million. In addition, Morgan Stanley & Co. LLC raised its holdings by 5.95 million to 42.23 million shares. And Alfred Berg Kapitalförvaltning AB has lifted its position by 39.37% or 6.9 million shares – to 24.43 million shares.

    With over 2.4 million VEON Ltd. (VEON) shares trading Tuesday and a closing price of $1.48 on the day, the dollar volume was approximately $3.55 million. The shares have shown a negative weekly performance of -3.90% and its price on 08/25/20 lost nearly -3.27%. Currently, there are 1.75B common shares owned by the public and among those 751.16M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 9 analysts who have offered their price forecasts for VEON have a consensus price objective of $1.88. The analysts have set the share’s price value over the next 12 months at a high of $2.20 and a low of $1.70 should the stock experience a downside. Incidentally, analysts’ outlook for the VEON Ltd. stock is 2.70 for the next 12 months. The average price target is 35.93% above its last price level and an upside to the estimated low will see the stock gain 12.94% over that period. But an upside of 32.73% will see the stock hit the forecast high price target while mean target price for the stock is $1.85.

    The top 3 mutual fund holders in VEON Ltd. are BNP Paribas Funds – Russia Equity, First Trust NASDAQ Technology Div, and BlackRock Strategic Fds. – Emergi. BNP Paribas Funds – Russia Equity owns 20.88 million shares of the company’s stock, all valued at over $35.28 million. The company sold -2.72 million shares recently to bring their total holdings to about 1.19% of the shares outstanding. BlackRock Strategic Fds. – Emergi sold -2.04 million shares to bring its total holdings to over 9.29 million shares at a value of $15.7 million. BlackRock Strategic Fds. – Emergi now owns shares totaling to 0.53% of the shares outstanding.

    Shares of VEON Ltd. (NASDAQ: VEON) opened at $1.55, up $0.02 from a prior closing price of $1.53. However, the script later closed the day at $1.48, down -3.27%. The company’s stock has a 5-day price change of -3.90% and -1.33% over the past three months. VEON shares are trading -41.50% year to date (YTD), with the 12-month market performance down to -42.86% lower. It has a 12-month low price of $1.25 and touched a high of $2.78 over the same period. Currently, 2.4 million shares have been traded, compared to an average intraday trading volume of 5.89 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 -7.53%, -13.08%, and -25.01% respectively.

    Institutional ownership of VEON Ltd. (NASDAQ: VEON) shares accounts for 26.40% of the company’s 1.75B shares outstanding. Mutual fund holders own 16.89%, while other institutional holders and individual stakeholders account for 8.26% and — respectively.

    It has a market capitalization of $2.63B and a beta (3y monthly) value of 1.35. The stock’s trailing 12-month PE ratio is 8.04, while the earnings-per-share (ttm) stands at $0.18. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.50% over the week and 3.09% over the month.

    Analysts forecast that VEON Ltd. (VEON) will achieve an EPS of $0.04 for the current quarter, $0.03 for the next quarter and $0.27 for 2021. The lowest estimate earnings-per-share for the quarter is $0.04 while analysts give the company a high EPS estimate of $0.05. Comparatively, EPS for the current quarter was $0.02 a year ago. Earnings per share for the fiscal year are expected to increase by 256.40%, and 26.89% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate VEON Ltd. (VEON) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 8 of the 9 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the VEON, a number of firms have released research notes about the stock. UBS stated their Neutral rating for the stock in a research note on July 23, 2020, with the firm’s price target at. JP Morgan coverage for the VEON Ltd. (VEON) stock in a research note released on March 11, 2020 offered a Neutral rating with a price target of $2.20. JP Morgan was of a view on February 14, 2020 that the stock is Underweight, while Goldman gave the stock Buy rating on July 11, 2019, issuing a price target of. BofA/Merrill on their part issued Buy rating on July 09, 2019.


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