Verra Mobility Corp (NASDAQ:VRRM) Receives Consensus Rating of "Reduce" from Analysts

Key Points

• Analyst sentiment is weak: Verra Mobility has a consensus rating of "Reduce" from 10 analysts, with 2 sell ratings and 8 hold ratings. The average 12-month price target is $6.50.
• Recent coverage has turned more cautious: Several firms lowered or maintained neutral views on VRRM, including downgrades from Wall Street Zen and William Blair. Morgan Stanley also set a relatively low $4.00 target price.
• The stock is under pressure despite recent earnings in line with expectations: VRRM last traded around $4.12, far below its 52-week high of $25.57. The company matched quarterly EPS and revenue estimates, but investor attention remains focused on ongoing litigation and class-action headlines.

Shares of Verra Mobility Corp (NASDAQ:VRRM - Get Free Report) have received an average recommendation of "Reduce" from the ten research firms that are covering the stock, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation and eight have issued a hold recommendation on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $6.50.

Several analysts have recently weighed in on the company. Northcoast Research restated a "neutral" rating on shares of Verra Mobility in a report on Wednesday, May 27th. Wall Street Zen lowered shares of Verra Mobility from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Weiss Ratings lowered shares of Verra Mobility from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, June 17th. Morgan Stanley set a $4.00 target price on shares of Verra Mobility in a research report on Wednesday, May 27th. Finally, William Blair lowered shares of Verra Mobility from an "outperform" rating to a "market perform" rating in a report on Wednesday, May 27th.

Hedge Funds Weigh In On Verra Mobility

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

Trending Headlines about Verra Mobility

Here are the key news stories impacting Verra Mobility this week:

• Positive Sentiment: None of the new items are clearly positive for VRRM; the latest headlines are focused on litigation and investor-loss deadlines.
• Neutral Sentiment: Several law firms, including Rosen, Pomerantz, Faruqi & Faruqi, Kaplan Fox, the Schall Law Firm, the Gross Law Firm, Robbins LLP, and Levi & Korsinsky, issued reminders or investor alerts about the pending class action and lead-plaintiff process. Article Title
• Neutral Sentiment: Hagens Berman expanded its investigation after Verra Mobility’s abrupt leadership transition, tying the issue to an earlier securities suit related to the loss of a major contract. Article Title
• Negative Sentiment: The repeated lawsuit reminders may keep attention on alleged disclosure issues and the reported stock collapse during the class period, which is a negative overhang for sentiment. Article Title

Verra Mobility Stock Up 1.2%

Shares of VRRM opened at $4.12 on Wednesday. The company has a debt-to-equity ratio of 3.76, a quick ratio of 1.77 and a current ratio of 1.89. Verra Mobility has a 52 week low of $3.40 and a 52 week high of $25.57. The stock has a market capitalization of $625.86 million, a price-to-earnings ratio of 5.02 and a beta of 0.43. The stock has a fifty day moving average of $6.16 and a 200-day moving average of $13.39.

Verra Mobility (NASDAQ:VRRM - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The company reported $0.25 earnings per share for the quarter, hitting analysts' consensus estimates of $0.25. The business had revenue of $223.57 million for the quarter, compared to analyst estimates of $223.34 million. Verra Mobility had a return on equity of 55.59% and a net margin of 13.38%.Verra Mobility's quarterly revenue was up .1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.30 EPS. Verra Mobility has set its FY 2026 guidance at 1.320-1.380 EPS. As a group, sell-side analysts anticipate that Verra Mobility will post 1.08 earnings per share for the current fiscal year.

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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