Vertex (NASDAQ:VERX) Shares Gap Up After Strong Earnings

Key Points

• Vertex shares jumped after better-than-expected quarterly results, opening at $18.21 versus the prior close of $15.92. The stock later traded around $17.70.
• Vertex reported EPS of $0.26, beating the $0.22 consensus, and revenue of $213.28 million, above estimates of $209.72 million. Revenue grew 11% year over year, and EPS rose from $0.17 a year earlier.
• Analyst views remain mixed: Needham raised its price target to $30 and maintained a Buy rating, while Piper Sandler raised its target to $20 but kept a Neutral rating. Overall, analysts’ consensus rating is Hold, with an average price target of $18.79.

Vertex, Inc. (NASDAQ:VERX - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $15.92, but opened at $18.21. Vertex shares last traded at $17.6980, with a volume of 518,354 shares trading hands.

The company reported $0.26 EPS for the quarter, topping analysts' consensus estimates of $0.22 by $0.04. Vertex had a net margin of 0.45% and a return on equity of 29.00%. The business had revenue of $213.28 million for the quarter, compared to the consensus estimate of $209.72 million. During the same period in the previous year, the firm earned $0.17 EPS. The business's revenue for the quarter was up 11.0% on a year-over-year basis.

Vertex News Summary

Here are the key news stories impacting Vertex this week:

• Positive Sentiment: Vertex reported Q3 2026 earnings of $0.26 per share, above the $0.22 consensus estimate, and revenue of $213.28 million, topping expectations of $209.72 million. Revenue rose 11% year over year, while EPS increased from $0.17 a year earlier—results that may support investor optimism. Vertex Q3 2026 results
• Positive Sentiment: Needham raised its price target to $30 from $20 and maintained a Buy rating, signaling increased confidence in Vertex’s prospects. Needham recommendations
• Neutral Sentiment: Piper Sandler lifted its target to $20 from $16 but kept a Neutral rating, reflecting a more cautious stance than Needham. Piper Sandler recommendations

Analyst Ratings Changes

A number of brokerages have recently commented on VERX. Morgan Stanley downgraded Vertex from an "overweight" rating to an "equal weight" rating and cut their price objective for the company from $19.00 to $15.00 in a research report on Tuesday, July 21st. TD Cowen decreased their target price on Vertex from $16.00 to $15.00 and set a "buy" rating on the stock in a report on Tuesday, October 13th. DA Davidson set a $16.00 target price on Vertex in a report on Thursday. BMO Capital Markets boosted their target price on Vertex from $14.00 to $15.00 and gave the stock a "market perform" rating in a research report on Tuesday, August 4th. Finally, Piper Sandler upped their target price on Vertex from $16.00 to $20.00 and gave the company a "neutral" rating in a report on Thursday. Six equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $18.79.

Institutional Investors Weigh In On Vertex

A number of large investors have recently made changes to their positions in the company. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in shares of Vertex during the first quarter valued at $37,796,000. Arrowstreet Capital Limited Partnership raised its position in Vertex by 1,906.8% during the first quarter. Arrowstreet Capital Limited Partnership now owns 935,668 shares of the company's stock valued at $11,125,000 after buying an additional 889,042 shares during the period. North Star Asset Management Inc. purchased a new stake in Vertex in the 2nd quarter worth about $2,899,000. Allianz Asset Management GmbH purchased a new stake in Vertex in the 2nd quarter worth about $2,182,000. Finally, Corient Private Wealth LP purchased a new stake in Vertex in the 2nd quarter worth about $1,766,000. Institutional investors and hedge funds own 70.32% of the company's stock.

Vertex Price Performance

The stock has a market capitalization of $2.84 billion, a price-to-earnings ratio of 875.19 and a beta of 0.77. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 1.40. The stock has a 50-day simple moving average of $13.28 and a 200 day simple moving average of $13.30.

Vertex Company Profile

Vertex, Inc is a tax technology company that provides software and services to help businesses manage tax determination, compliance and reporting. Its solutions are designed to support complex transaction tax requirements across sales and use tax, value-added tax, goods and services tax, communications tax, and other indirect taxes.

The company's offerings include cloud-based and enterprise tax software, tax calculation engines, compliance and returns management tools, tax data management, and related professional services.

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