Vertex (NASDAQ:VERX) Stock Price Up 6.8% - What's Next?

Key Points

• Vertex shares rose 6.8% to approximately $13.10 in mid-day trading, though volume was about 90% below the average session level.
• Analyst sentiment remains mixed: seven analysts rate the stock a Buy, seven a Hold and one a Sell, resulting in an overall “Hold” rating and a consensus price target of $17.43.
• Vertex exceeded quarterly expectations, reporting $0.20 EPS and $203.97 million in revenue, with revenue up 10.5% year over year; institutional investors own 70.32% of the company.

Vertex, Inc. (NASDAQ:VERX - Get Free Report) was up 6.8% during mid-day trading on Monday . The company traded as high as $12.99 and last traded at $13.0990. Approximately 192,264 shares traded hands during trading, a decline of 90% from the average session volume of 1,895,982 shares. The stock had previously closed at $12.26.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. TD Cowen assumed coverage on Vertex in a research note on Monday, June 29th. They set a "buy" rating and a $14.00 target price for the company. Needham & Company LLC reissued a "buy" rating on shares of Vertex in a report on Monday, June 8th. Morgan Stanley restated an "equal weight" rating and set a $15.00 price objective (down from $19.00) on shares of Vertex in a research report on Tuesday, July 21st. Weiss Ratings raised shares of Vertex from a "sell (e+)" rating to a "sell (d)" rating in a research note on Wednesday, August 5th. Finally, Stephens dropped their target price on shares of Vertex from $20.00 to $18.00 and set an "overweight" rating on the stock in a report on Tuesday, August 4th. Seven investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $17.43.

Vertex Stock Performance

The firm's 50-day moving average price is $12.87 and its two-hundred day moving average price is $12.79. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 1.40. The firm has a market capitalization of $2.16 billion, a PE ratio of 664.03 and a beta of 0.83.

Vertex (NASDAQ:VERX - Get Free Report) last released its earnings results on Monday, August 3rd. The company reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.19 by $0.01. Vertex had a return on equity of 29.00% and a net margin of 0.45%.The company had revenue of $203.97 million during the quarter, compared to analyst estimates of $202.21 million. During the same quarter in the prior year, the company earned $0.15 earnings per share. The company's revenue for the quarter was up 10.5% on a year-over-year basis. As a group, research analysts predict that Vertex, Inc. will post 0.54 earnings per share for the current fiscal year.

Institutional Trading of Vertex

A number of institutional investors have recently added to or reduced their stakes in the business. Quantinno Capital Management LP grew its stake in Vertex by 275.2% in the 1st quarter. Quantinno Capital Management LP now owns 141,793 shares of the company's stock valued at $1,686,000 after buying an additional 104,006 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its position in Vertex by 1,906.8% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 935,668 shares of the company's stock worth $11,125,000 after acquiring an additional 889,042 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund bought a new stake in Vertex during the first quarter valued at about $37,796,000. North Star Asset Management Inc. bought a new stake in Vertex during the second quarter valued at about $2,899,000. Finally, Allianz Asset Management GmbH acquired a new stake in shares of Vertex in the second quarter valued at about $2,182,000. 70.32% of the stock is currently owned by institutional investors and hedge funds.

About Vertex

Vertex, Inc NASDAQ: VERX is a provider of tax technology solutions for businesses. The company develops cloud-based software designed to help organizations calculate, manage and comply with transaction tax obligations across complex jurisdictions and regulatory environments.

Vertex's product portfolio includes solutions for indirect tax determination and compliance, including sales and use tax, value-added tax and other transaction taxes. Its offerings also support tax data management, tax returns, exemption certificate management, tax reporting and related workflows.

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