Vertex, Inc. (NASDAQ:VERX) Receives Consensus Rating of “Moderate Buy” from Brokerages

Vertex, Inc. (NASDAQ:VERX) has garnered a consensus rating of "Moderate Buy" from thirteen brokerages monitoring the stock, according to Marketbeat.com. Out of these analysts, five have assigned a hold rating, seven have issued a buy rating, and one has classified it as a strong buy. The average target price for the stock over the next twelve months, as estimated by these brokerages, stands at $49.82.

Vertex has been highlighted in several research reports lately. Citigroup recently raised their price target for Vertex shares from $46.00 to $54.00 while maintaining a "neutral" rating in their publication dated December 16th. Meanwhile, DA Davidson lowered their target from $62.00 to $55.00 and kept a "buy" status in a report issued on February 28th. Needham & Company reiterated a "buy" rating with a target price of $60.00 on March 20th, and JMP Securities maintained a "market outperform" rating with a $61.00 price target in their report from December 9th. Furthermore, Morgan Stanley revised its target price upwards from $57.00 to $60.00 and rated the stock "overweight" on March 20th.

Vertex Trading Performance

On Wednesday, Vertex stock opened at $35.54, showing a slight increase of 0.5%. The firm has a debt-to-equity ratio of 1.29 and maintains both a quick ratio and current ratio of 1.04. Over the last year, Vertex shares have traded within a range, hitting a fifty-two week low of $27.22 and a high of $60.71. Currently, the company has a market capitalization of $5.62 billion, a P/E ratio of 197.44, a PEG ratio of 6.66, and a beta of 0.87. The fifty-day moving average for the stock is priced at $45.64, with the two-hundred day moving average at $46.52.

Vertex released its quarterly earnings on February 27th, reporting earnings per share of $0.10, which fell short of the consensus estimate of $0.13 by $0.03. The company achieved a net margin of 4.73% and a return on equity of 24.92%, with quarterly revenues reaching $178.46 million, surpassing analyst projections of $176.90 million. Analysts predict that Vertex will report earnings per share of 0.38 for the current fiscal year.

Insider Transactions

In recent news, Vertex General Counsel Bryan T.R. Rowland sold 43,228 shares in a transaction dated March 19th, at an average price of $35.98, totaling about $1,555,343.44. Post-sale, Rowland holds 132 shares valued at roughly $4,749.36, marking a 99.70% reduction in his stake. This transaction was documented with the Securities and Exchange Commission (SEC). Additionally, major shareholder Item Second Irr. Trust Fbo Kyl sold 53,843 shares on January 22nd, at an average price of $56.48, amounting to approximately $3,041,052.64. After the sale, this insider maintains 1,229,257 shares valued around $69.43 million, a 4.20% decrease in ownership. Corporate insiders currently own 44.58% of the company’s stock.

Institutional Investor Activity

Recently, several large institutional investors have adjusted their positions in Vertex. Fairman Group LLC acquired a new position in shares of Vertex worth $327,000 in the fourth quarter. Empowered Funds LLC also bought shares valued at $3,363,000 during the same period. Victory Capital Management Inc. significantly increased its stake in Vertex by 406.9% in the third quarter, now owning 34,386 shares worth about $1.32 million. Moreover, DRW Securities LLC bought a new stake worth $840,000 in the third quarter, and Triasima Portfolio Management Inc. procured shares valued at $3,135,000 in the fourth quarter. Currently, hedge funds and institutional investors hold around 70.32% of the company's shares.

Company Overview

Vertex, Inc. provides enterprise tax technology solutions across various industries, including retail, wholesale, and manufacturing both in the U.S. and internationally. The company’s offerings encompass tax determination, compliance and reporting with features like workflow management tools, security measures, and analytics for insights.

Vertex, Stocks, Analysis