Is Vonage Holdings Corporation (NYSE:VG) a Good Investment?


Technical Indicators and Signals

The stochastic oscillator indicator is the important indicator to compare the security price over a certain period of time. The stochastic %K of Vonage Holdings Corporation (NYSE:VG) for the period of 9-Day stands at 77.31% while the stochastic %D for the same period stands at 77.28%.

The 7-Day Average Directional Index ADX (also known as Trend Strength Indicator) of Vonage Holdings Corporation (NYSE:VG) signals “Buy” while other important signals like the 20-Day Moving Average Vs. Price signals “Buy”.

Another important signal of trend and momentum of a security is 20-50 Day MACD Oscillator or Moving Average Convergence Divergence signals “Buy” for Vonage Holdings Corporation (NYSE:VG) while 20-100 Day MACD Oscillator indicates “Buy”.

Bollinger band is a volatility indicator of a certain security, currently Vonage Holdings Corporation (NYSE:VG)’s 20-Day Bollinger Band indicates “Hold”.

About Company

Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. The fastest growing telephony company in North America, Vonage’s service area encompasses more than 2000 active rate centers in over 130 global markets. Vonage is sold directly through their website and retail partners such as SAM’s Club,, RadioShack, Best Buy, Circuit City, Staples, Fry’s Electronics and Office Depot. Wholesale partners such as EarthLink, ARMSTRONG(R), Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own unique brands. With more than 300,000 lines in service, Vonage continues to add more than 30,000 lines per month to its network. Over 10 million calls per week are made using Vonage, the easy-to-use, feature-rich, flat rate phone service.

Previous Day Activity Analysis

On the last trading day, Vonage Holdings Corporation (NYSE:VG) opened the session at $8.84 and after going down -0.79% closed at $8.78. The stock lost -0.06 points in the last trade.

Vonage Holdings Corporation (NYSE:VG)’s stock fluctuated in the range of $8.72 and $8.89 during the previous active session. Vonage Holdings Corporation (NYSE:VG) traded with the volume of 1.45 Million with average volume of 1.91 Million. The stock has HIGH volatility on the last trading session.

Currently the Beta for the company remains at -0.12 while ATR (Average True Range) and RSI (Relative Strength Index) are at 0.23 and 65.26 respectively.

Currently the Insider Ownership of the shares of Vonage Holdings Corporation (NYSE:VG) is at 6.2% and the shares outstanding are 222.98 Million.

Important Ratio Analysis

Some important ratios to consider here for Vonage Holdings Corporation (NYSE:VG) are discussed below:

Price to Earnings P/E ratio stands at 99.77 while Forward P/E shows the value of 28.69.

The PEG ratio (Price to Earning to Growth) emits the value of 9.98. The Price to Sale P/S and Price to Book P/B shows the value of 1.97 and 3.92 respectively. While Price to Cash P/C and Price to Free Cash Flow P/FCF stands at 65.48 and 22.12 correspondingly.

The Quick Ratio of Vonage Holdings Corporation (NYSE:VG) stands at 0.6 while the Current Ratio depicts the value of 0.6.

Return on Assets ROA of Vonage Holdings Corporation (NYSE:VG) is at 2.3% whereas, Return on Equity ROE and Return of Investment ROI of Vonage Holdings Corporation (NYSE:VG) stand at 4.6% and 4.1% respectively.

Stock Performance Analysis

The stock performance of Vonage Holdings Corporation (NYSE:VG) on the basis of 5 day trade show the jump of 7.86% whereas, the monthly performance of the stock shows increase of 6.17%.

The quarterly performance of the stock remained in green zone with the value of 8.26% while six month performance of the shares of Vonage Holdings Corporation (NYSE:VG) remained bullish with the count of 31.44%.

The yearly and YTD performance of Vonage Holdings Corporation (NYSE:VG) remained up at 38.27% and 28.18% respectively.