The California-based company Virco Manufacturing Corp. (NASDAQ: VIRC) facilitates the design, production, and distribution of furniture. Some of the products offered by the firm are Mobile tables, storage equipment, desks, computer furniture, chairs, folding chairs, and folding tables.
The VIRC stock price has risen more than 82% after its quarter 2 earnings were published. In its quarterly report, the revenue was posted as $107M, which rose by 29% as of last year. The company made $48M in gross profit and it was 45% of revenue.
The management has implemented cost-cutting measures over the last two quarters in order to achieve positive operating profits for the firm. Additionally, not only the operating income increased but the net profit also became positive. The return on equity for the current period is 28% while the earnings per share is $1.6.
Technical Analysis and Prediction of the VIRC Stock Price
The VIRC stock price has been in a deep consolidation since the start of July last year. This sideways market only ended after the firm published its recent quarter report. During the uptrend, the stock broke 2 major resistances, one of $6.37 and another of $7.81.
At the press time, the VIRC stock has managed to claim its initial support level of $6.37 and is currently being traded at $7.81. At present, the stock is positioned close to its first resistance level of $7.98. If it surpasses this level, the next supply zone will be at $9.44 and the second resistance level will be at $5.03.
The 50-day exponential moving average is at $5.93. It has done a bullish crossover with the 150 DEMA, which is at $4.94. Moreover, the RSI is at 62 after bouncing back from the neutral zone of 52. The Simple moving average line of the RSI is at 66 after a bearish crossover.
The price prediction of VIRC stock
Based on current trends, it appears that the VIRC stock price will remain in the consolidation zone until a significant shift occurs. While there is a high chance of a bullish phase in the near future, investing without the stock breaking past its immediate resistance level carries a significant amount of risk. Therefore taking any position currently will be a risk-adverse decision.
Conclusion
Virco Manufacturing Corp. (NASDAQ: VIRC) is a California-based company. The VIRC stock price started rising after its earnings reports for the latest quarter were published. The current price is near the 52-week high, and the prediction is bullish.
Technical Levels
- Support Levels: $6.37 and $5.03
- Resistance Levels: $7.98 and $9.44
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/17/virc-stock-price-shares-surged-82-after-the-quarterly-report/