Vroom (NASDAQ:VRM) Stock Falls 5.4% – Here’s Why

Vroom, Inc. (NASDAQ:VRM) fell 5.4% on Monday. The stock traded as low as $8.11 and last traded at $8.45. 25,045 shares were traded during mid-day trading, an increase of 266% from the average session volume of 6,848 shares. The stock had previously closed at $8.93.

Analyst Ratings Changes

Separately, Weiss Ratings restated a “sell (e+)” rating on shares of Vroom in a research report on Wednesday, August 26th. One investment analyst has rated the stock with a Sell rating. According to MarketBeat.com, Vroom has a consensus rating of “Sell”.

Vroom Price Performance

The stock has a market cap of $44.19 million, a price-to-earnings ratio of -0.76 and a beta of 1.27. The company’s 50 day moving average is $9.65 and its 200 day moving average is $10.39.

Institutional Inflows and Outflows

An institutional investor recently raised its stake in Vroom stock. Mudrick Capital Management L.P. boosted its holdings in Vroom, Inc. (NASDAQ:VRM) by 0.4% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 3,982,846 shares of the company’s stock after buying an additional 15,595 shares during the period. Vroom accounts for approximately 6.8% of Mudrick Capital Management L.P.’s holdings, making the stock its 3rd largest holding. Mudrick Capital Management L.P. owned approximately 76.15% of Vroom worth $30,668,000 as of its most recent SEC filing. Institutional investors and hedge funds own 25.79% of the company’s stock.

About Vroom

Vroom, Inc was an online automotive retailer that operated a digital platform for buying and selling used vehicles. The company enabled customers to browse inventory, obtain financing, complete purchases and arrange vehicle delivery online, offering an alternative to traditional dealership-based transactions.

Founded in 2013 and headquartered in New York, Vroom expanded its operations across the United States. Its business also included automotive finance through United Auto Credit Corporation and automotive data and analytics services through CarStory, which provided technology and insights to dealers and other industry participants.

In January 2024, Vroom announced that it was suspending its ecommerce operations and discontinuing its used-vehicle dealership activities.