Verra Mobility (NASDAQ:VRRM) Reaches New 1-Year Low - Should You Sell?

Key Points

• Verra Mobility shares fell to a new 52-week low, trading as low as $3.38 and closing near $3.41, well below the 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: nine analysts rate the stock “Hold” and one rates it “Sell,” producing a consensus “Reduce” rating and an average price target of $7.00. Deutsche Bank sharply cut its target to $9 from $22.
• Despite the stock decline, the latest quarter exceeded expectations, with EPS of $0.38 versus $0.33 expected and revenue of $263.6 million, up 11.7% year over year.

Shares of Verra Mobility Corp (NASDAQ:VRRM - Get Free Report) hit a new 52-week low on Thursday . The company traded as low as $3.38 and last traded at $3.41, with a volume of 8082926 shares changing hands. The stock had previously closed at $3.54.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on VRRM shares. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $9.00 target price (down from $22.00) on shares of Verra Mobility in a report on Wednesday, May 27th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Verra Mobility in a research report on Monday. Northcoast Research reiterated a "neutral" rating on shares of Verra Mobility in a report on Wednesday, May 27th. JPMorgan Chase & Co. upgraded Verra Mobility from an "underweight" rating to a "neutral" rating and upped their price target for the stock from $5.00 to $6.00 in a report on Monday, July 13th. Finally, Robert W. Baird dropped their price objective on shares of Verra Mobility from $8.00 to $6.00 and set a "neutral" rating on the stock in a research note on Tuesday, June 2nd. Nine analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Reduce" and an average target price of $7.00.

Verra Mobility Stock Down 3.7%

The company has a quick ratio of 1.96, a current ratio of 2.06 and a debt-to-equity ratio of 4.58. The firm has a market capitalization of $518.25 million, a price-to-earnings ratio of 13.12 and a beta of 0.38. The stock has a 50 day moving average of $4.40 and a 200 day moving average of $8.83.

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

Institutional Investors Weigh In On Verra Mobility

Large investors have recently added to or reduced their stakes in the stock. Bank of America Corp DE increased its stake in shares of Verra Mobility by 34.4% in the first quarter. Bank of America Corp DE now owns 1,576,119 shares of the company's stock valued at $22,523,000 after purchasing an additional 403,638 shares during the period. Edgestream Partners L.P. boosted its holdings in shares of Verra Mobility by 41.5% in the first quarter. Edgestream Partners L.P. now owns 818,595 shares of the company's stock valued at $11,698,000 after acquiring an additional 240,163 shares in the last quarter. River Road Asset Management LLC boosted its holdings in shares of Verra Mobility by 441.6% in 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 in the last quarter. Hawk Ridge Capital Management LP acquired a new position in shares of Verra Mobility during the first quarter valued at approximately $6,390,000. Finally, Aristotle Capital Boston LLC increased its position in shares of Verra Mobility by 56.3% during the 4th quarter. Aristotle Capital Boston LLC now owns 661,918 shares of the company's stock valued at $14,834,000 after purchasing an additional 238,328 shares during the period.

About Verra Mobility

Verra Mobility Corp. NASDAQ: VRRM is a technology company that provides smart mobility and transportation safety solutions to government agencies, commercial fleets, rental car companies and parking operators. Its platform is designed to help organizations manage vehicles, roadways, parking operations and transportation-related compliance.

Through its Government Solutions business, Verra Mobility provides automated traffic-enforcement systems and related services, including red-light, speed and school-zone enforcement, school-bus stop-arm safety programs, toll and violation processing, and other camera-based roadway safety technologies.

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