Vonage Holdings Corp. (NASDAQ: VG): The Best-Of-Breed For Investing?


    BlackRock Fund Advisors 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 1.45% to 29.87 million shares with purchase of 0.43 million shares. This fresh investment now brings its stake to 12.17% valued currently at $356.93 million. In addition, Janus Capital Management LLC raised its holdings by 2.42 million to 14.59 million shares. And SSgA Funds Management, Inc. has lifted its position by 8.34% or 0.62 million shares – to 8.09 million shares.

    With over 1.56 million Vonage Holdings Corp. (VG) shares trading Tuesday and a closing price of $11.20 on the day, the dollar volume was approximately $17.42 million. The shares have shown a positive weekly performance of 1.36% and its price on 08/25/20 gained nearly 0.27%. Currently, there are 245.39M common shares owned by the public and among those 231.50M 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: 14 analysts who have offered their price forecasts for VG have a consensus price objective of $14.31. The analysts have set the share’s price value over the next 12 months at a high of $16.50 and a low of $12.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Vonage Holdings Corp. stock is 1.80 for the next 12 months. The average price target is 20.79% above its last price level and an upside to the estimated low will see the stock gain 6.67% over that period. But an upside of 32.12% will see the stock hit the forecast high price target while mean target price for the stock is $14.00.

    Insiders at the company have transacted a total of 143 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 85 of these insider trades were purchases, accounting for 4,268,354 shares. Insider sales of the common stock occurred on 58 occasions, with total insider shares sold totaling 2,471,001 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 $136.44 million. Janus Henderson Triton Fund bought 2.1 million shares to see its total holdings expand to 11.28 million shares valued at over $134.78 million and representing 4.60% of the shares outstanding. First Trust Dow Jones Internet In sold 15775.0 shares to bring its total holdings to over 7.71 million shares at a value of $92.19 million. First Trust Dow Jones Internet In now owns shares totaling to 3.14% of the shares outstanding.

    Shares of Vonage Holdings Corp. (NASDAQ: VG) opened at $11.09, down -$0.08 from a prior closing price of $11.17. However, the script later closed the day at $11.20, up 0.27%. The company’s stock has a 5-day price change of 1.36% and 14.87% over the past three months. VG shares are trading 51.15% year to date (YTD), with the 12-month market performance down to -15.85% lower. It has a 12-month low price of $4.18 and touched a high of $13.53 over the same period. Currently, 1.56 million shares have been traded, compared to an average intraday trading volume of 3.02 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 -5.66%, 1.59%, and 25.59% respectively.

    Institutional ownership of Vonage Holdings Corp. (NASDAQ: VG) shares accounts for 90.30% of the company’s 245.39M shares outstanding. Mutual fund holders own 36.75%, while other institutional holders and individual stakeholders account for 52.08% and 20.83% respectively.

    It has a market capitalization of $2.80B and a beta (3y monthly) value of 0.49. The earnings-per-share (ttm) stands at -$0.15. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.66% over the week and 3.72% over the month.

    Analysts forecast that Vonage Holdings Corp. (VG) will achieve an EPS of $0.03 for the current quarter, $0.03 for the next quarter and $0.15 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.01 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 decrease by -156.10%, and 9.93% 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.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Vonage Holdings Corp. (VG) as a “Strong Buy” at a consensus score of 1.80. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 4 of the 14 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the VG, a number of firms have released research notes about the stock. Morgan Stanley stated their Equal-Weight rating for the stock in a research note on August 18, 2020, with the firm’s price target at $13. Rosenblatt coverage for the Vonage Holdings Corp. (VG) stock in a research note released on July 28, 2020 offered a Neutral rating with a price target of $12. Jefferies was of a view on June 09, 2020 that the stock is Hold, while Morgan Stanley gave the stock Overweight rating on March 25, 2020, issuing a price target of $7.50. Dougherty & Company on their part issued Buy rating on February 19, 2020.


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