Verra Mobility (NASDAQ:VRRM) Stock Gets Price Target Trim from Morgan Stanley

Key Points

• Morgan Stanley cut its price target on Verra Mobility from $5 to $3 while maintaining an “equal weight” rating; the new target implies 15.61% upside from the then-current share price. Analysts’ consensus rating was “Reduce,” with an average target of $6.50.
• Shares fell 2.4% to $2.60 on Wednesday, near their 12-month low of $2.51.
• Verra Mobility beat quarterly estimates, reporting EPS of $0.36 versus $0.26 expected and revenue of $258.88 million versus $240.57 million expected. Revenue was nevertheless down 1.2% year over year.

Verra Mobility (NASDAQ:VRRM - Get Free Report) had its price target decreased by analysts at Morgan Stanley from $5.00 to $3.00 in a research report issued on Wednesday, Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's price target points to a potential upside of 15.61% from the company's current price.

Several other equities research analysts also recently weighed in on VRRM. Zacks Research raised Verra Mobility from a "strong sell" rating to a "hold" rating in a report on Thursday, August 13th. Weiss Ratings reiterated a "sell (d)" rating on shares of Verra Mobility in a research report on Monday, September 14th. JPMorgan Chase & Co. cut shares of Verra Mobility from a "neutral" rating to an "underweight" rating in a research note on Tuesday. Finally, UBS Group increased their price target on shares of Verra Mobility from $4.00 to $6.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Eight research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and an average target price of $6.50.

Verra Mobility Stock Down 2.4%

VRRM traded down $0.07 during trading hours on Wednesday, hitting $2.60. 2,340,038 shares of the company's stock were exchanged, compared to its average volume of 4,503,867. The firm has a market cap of $394.39 million, a P/E ratio of 10.85 and a beta of 0.45. Verra Mobility has a 12-month low of $2.51 and a 12-month high of $23.50. The company has a current ratio of 2.05, a quick ratio of 1.97 and a debt-to-equity ratio of 3.86. The firm has a 50 day moving average of $3.36 and a 200 day moving average of $9.39.

Verra Mobility (NASDAQ:VRRM - Get Free Report) last posted its quarterly earnings results on Friday, October 30th. The company reported $0.36 EPS for the quarter, topping the consensus estimate of $0.26 by $0.10. The business had revenue of $258.88 million during the quarter, compared to the consensus estimate of $240.57 million. Verra Mobility had a net margin of 3.77% and a return on equity of 71.65%. The company's quarterly revenue was down 1.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.37 earnings per share. Analysts predict that Verra Mobility will post 1.10 EPS for the current fiscal year.

Institutional Investors Weigh In On Verra Mobility

Several hedge funds have recently modified their holdings of VRRM. Fulcrum Asset Management LLP acquired a new stake in shares of Verra Mobility in the third quarter valued at about $401,000. 180 Wealth Advisors LLC boosted its holdings in Verra Mobility by 74.7% during the third quarter. 180 Wealth Advisors LLC now owns 225,897 shares of the company's stock worth $700,000 after buying an additional 96,622 shares in the last quarter. CenterBook Partners LP acquired a new position in Verra Mobility during the third quarter worth about $1,366,000. Prescott Group Capital Management L.L.C. grew its position in Verra Mobility by 130.9% during the third quarter. Prescott Group Capital Management L.L.C. now owns 666,350 shares of the company's stock worth $2,066,000 after buying an additional 377,823 shares during the period. Finally, State of Wyoming increased its holdings in Verra Mobility by 124.9% in the third quarter. State of Wyoming now owns 61,877 shares of the company's stock valued at $192,000 after buying an additional 34,360 shares in the last quarter.

Verra Mobility Company Profile

Verra Mobility Corporation NASDAQ: VRRM provides smart mobility technology and services designed to improve transportation safety, efficiency and compliance. The company develops cloud-based solutions that help government agencies, commercial fleets and mobility providers manage transportation-related processes and data.

Its government solutions include automated safety enforcement programs for red-light, speed, school-zone and bus-lane violations, as well as technology supporting school bus safety initiatives.

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