Vertex (NASDAQ:VERX) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Vertex from “Buy” to “Hold.” Across analysts, the stock has seven Buy ratings, seven Hold ratings and one Sell rating, with a consensus target price of $17.43.
• Vertex shares opened at $12.95, compared with a 52-week range of $10.21 to $26.54. The company trades at a very high P/E ratio of 647.82 and has a market capitalization of approximately $2.10 billion.
• Vertex exceeded quarterly expectations, reporting $0.20 in EPS versus $0.19 expected and revenue of $203.97 million versus $202.21 million expected. Revenue increased 10.5% year over year, while institutional investors own 70.32% of the stock.

Vertex (NASDAQ:VERX - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Several other research analysts have also recently issued reports on the stock. TD Cowen initiated coverage on shares of Vertex in a report on Monday, June 29th. They set a "buy" rating and a $14.00 price target for the company. BMO Capital Markets lifted their price objective on Vertex from $14.00 to $15.00 and gave the company a "market perform" rating in a report on Tuesday, August 4th. Weiss Ratings upgraded Vertex from a "sell (e+)" rating to a "sell (d)" rating in a research report on Wednesday, August 5th. Morgan Stanley reissued an "equal weight" rating and set a $15.00 target price (down from $19.00) on shares of Vertex in a research note on Tuesday, July 21st. Finally, Stephens reduced their price target on Vertex from $20.00 to $18.00 and set an "overweight" rating for the company in a report on Tuesday, August 4th. Seven analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $17.43.

Vertex Stock Performance

Shares of VERX opened at $12.95 on Friday. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.87 and a current ratio of 0.87. The stock has a market capitalization of $2.10 billion, a P/E ratio of 647.82 and a beta of 0.83. The company's fifty day moving average is $12.68 and its two-hundred day moving average is $12.53. Vertex has a 1 year low of $10.21 and a 1 year high of $26.54.

Vertex (NASDAQ:VERX - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The company reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.19 by $0.01. The company had revenue of $203.97 million during the quarter, compared to the consensus estimate of $202.21 million. Vertex had a net margin of 0.45% and a return on equity of 29.00%. Vertex's quarterly revenue was up 10.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.15 EPS. On average, sell-side analysts predict that Vertex will post 0.54 earnings per share for the current year.

Institutional Trading of Vertex

A number of institutional investors have recently added to or reduced their stakes in the stock. Quantinno Capital Management LP lifted its position in shares of Vertex by 275.2% during the 1st quarter. Quantinno Capital Management LP now owns 141,793 shares of the company's stock valued at $1,686,000 after acquiring an additional 104,006 shares during the period. Corient Private Wealth LP acquired a new stake in shares of Vertex in the 2nd quarter worth approximately $1,766,000. Squarepoint Ops LLC purchased a new position in Vertex in the 2nd quarter valued at approximately $938,000. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in Vertex in the 1st quarter valued at approximately $37,796,000. Finally, Arrowstreet Capital Limited Partnership raised its holdings in Vertex by 1,906.8% during the first quarter. Arrowstreet Capital Limited Partnership now owns 935,668 shares of the company's stock worth $11,125,000 after purchasing an additional 889,042 shares during the last quarter. Hedge funds and other institutional investors own 70.32% of the company's stock.

About Vertex

Vertex, Inc NASDAQ: VERX is a provider of tax technology solutions designed to help businesses manage transaction tax compliance. Its software supports the calculation, collection, reporting and remittance of taxes such as sales and use tax, value-added tax, goods and services tax, and communications tax.

The company offers cloud-based and enterprise tax solutions that integrate with accounting, enterprise resource planning, e-commerce and other business systems. Its products are designed to automate tax determination, tax returns and compliance workflows, manage tax data and support tax content across complex business operations.

Founded in 1978, Vertex is headquartered in King of Prussia, Pennsylvania, and serves organizations in the United States and international markets.

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