Verra Mobility Corp (NASDAQ:VRRM) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Analysts are cautious on Verra Mobility: Ten firms give the stock an average “Reduce” recommendation, with one sell rating and nine holds. The average 12-month price target is $7.00.
• Shares have fallen sharply, opening at $3.73 and trading near their 52-week low of $3.40, well below the 50-day and 200-day moving averages of $4.47 and $9.33, respectively.
• Verra Mobility exceeded quarterly expectations, reporting adjusted EPS of $0.38 versus $0.33 expected and revenue of $263.59 million, up 11.7% year over year. Analysts expect full-year EPS of $1.11.

Verra Mobility Corp (NASDAQ:VRRM - Get Free Report) has earned an average recommendation of "Reduce" from the ten research firms that are presently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation and nine have assigned a hold recommendation to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $7.00.

A number of brokerages have issued reports on VRRM. Weiss Ratings lowered Verra Mobility from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, June 17th. Morgan Stanley set a $5.00 price objective on Verra Mobility in a research note on Thursday, August 6th. Robert W. Baird cut their price objective on Verra Mobility from $8.00 to $6.00 and set a "neutral" rating for the company in a report on Tuesday, June 2nd. Zacks Research raised Verra Mobility from a "strong sell" rating to a "hold" rating in a research note on Thursday, August 13th. Finally, Northcoast Research reaffirmed a "neutral" rating on shares of Verra Mobility in a report on Wednesday, May 27th.

Verra Mobility Trading Down 4.6%

Shares of VRRM stock opened at $3.73 on Thursday. Verra Mobility has a 1 year low of $3.40 and a 1 year high of $25.45. The firm has a market capitalization of $566.89 million, a PE ratio of 14.35 and a beta of 0.38. The stock has a fifty day moving average of $4.47 and a two-hundred day moving average of $9.33. The company has a debt-to-equity ratio of 4.58, a quick ratio of 1.96 and a current ratio of 2.06.

Verra Mobility (NASDAQ:VRRM - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.38 EPS for the quarter, topping analysts' consensus estimates of $0.33 by $0.05. The company had revenue of $263.59 million for the quarter, compared to the consensus estimate of $254.81 million. Verra Mobility had a net margin of 4.40% and a return on equity of 64.39%. Verra Mobility's revenue was up 11.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.34 EPS. As a group, research analysts expect that Verra Mobility will post 1.11 EPS for the current year.

Hedge Funds Weigh In On Verra Mobility

Several hedge funds have recently made changes to their positions in the business. Norges Bank purchased a new stake in Verra Mobility during the fourth quarter valued at about $68,608,000. River Road Asset Management LLC raised its holdings in shares of Verra Mobility by 441.6% during the fourth quarter. River Road Asset Management LLC now owns 2,984,760 shares of the company's stock valued at $66,888,000 after acquiring an additional 2,433,610 shares during the period. Morgan Stanley raised its holdings in shares of Verra Mobility by 44.8% during the fourth quarter. Morgan Stanley now owns 4,194,005 shares of the company's stock valued at $93,988,000 after acquiring an additional 1,296,602 shares during the period. Goldman Sachs Group Inc. boosted its stake in Verra Mobility by 71.8% in the 4th quarter. Goldman Sachs Group Inc. now owns 2,924,781 shares of the company's stock worth $65,544,000 after purchasing an additional 1,222,116 shares during the period. Finally, Jane Street Group LLC grew its position in Verra Mobility by 188.7% during the 4th quarter. Jane Street Group LLC now owns 1,210,330 shares of the company's stock worth $27,123,000 after purchasing an additional 791,146 shares in the last quarter.

About Verra Mobility

Verra Mobility, traded on the Nasdaq under the ticker VRRM, is a leading provider of smart mobility solutions designed to improve safety, efficiency and compliance for transportation authorities and commercial fleets. The company develops and operates automated traffic enforcement systems, toll and violation management platforms, and connected-vehicle services. Through its technology offerings, Verra Mobility helps public agencies enhance road safety, reduce congestion and streamline revenue collection for tolling and parking.

Verra Mobility’s core products include red-light and speed-camera enforcement programs, license plate recognition systems, and cloud-based violation processing software.

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