Vera Bradley (VRA) Moving On Heavy Pre-Market Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Vera Bradley ( VRA) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Vera Bradley as such a stock due to the following factors:

  • VRA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.2 million.
  • VRA traded 118,555 shares today in the pre-market hours as of 9:12 AM, representing 17.6% of its average daily volume.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in VRA with the Ticky from Trade-Ideas. See the FREE profile for VRA NOW at Trade-Ideas

More details on VRA:

Vera Bradley, Inc., together with its subsidiaries, designs, manufactures, and sells handbags, accessories, and luggage and travel items for women of all ages under the Vera Bradley brand. VRA has a PE ratio of 14. Currently there are 3 analysts that rate Vera Bradley a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for Vera Bradley has been 623,300 shares per day over the past 30 days. Vera Bradley has a market cap of $539.4 million and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.48 and a short float of 70.2% with 8.35 days to cover. Shares are down 35% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Vera Bradley as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • VRA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, VRA has a quick ratio of 2.33, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for VERA BRADLEY INC is rather high; currently it is at 55.23%. Regardless of VRA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VRA's net profit margin of 11.36% compares favorably to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Textiles, Apparel & Luxury Goods industry average, but is greater than that of the S&P 500. The net income has decreased by 10.8% when compared to the same quarter one year ago, dropping from $19.45 million to $17.34 million.
  • Net operating cash flow has decreased to $47.56 million or 10.29% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Stocks Waver Amid a Rise in Bond Yields, Strong Earnings

Stocks Waver Amid a Rise in Bond Yields, Strong Earnings

NYSE Suspends Trading for Some Shares of Amazon, Alphabet

NYSE Suspends Trading for Some Shares of Amazon, Alphabet

Video: Jim Cramer Reveals Why He's Cautious on Stocks

Video: Jim Cramer Reveals Why He's Cautious on Stocks

Jim Cramer on Earnings: All Stories Aren't Equal

Jim Cramer on Earnings: All Stories Aren't Equal

4 Stocks Making Important Moves Wednesday

4 Stocks Making Important Moves Wednesday