Verra Mobility (NASDAQ:VRRM) Issues Quarterly Earnings Results

Key Points

• Q1 results met expectations: Verra Mobility reported EPS of $0.25 (in line with consensus) and revenue of $223.57M versus estimates of $223.34M, with a net margin of 13.95% and ROE of 57.45%.
• Shares and valuation snapshot: VRRM traded down to $14.32 (market cap ~$2.17B) with a P/E of 16.85, trading below its 50- and 200-day moving averages ($15.28 and $19.47) and carrying a high debt-to-equity ratio of 3.49.
• Mixed analyst and institutional activity: The consensus rating is "Hold" with a $23.50 price target as some firms cut targets while others upgraded, and large investors like Goldman Sachs and Millennium increased their stakes.

Verra Mobility (NASDAQ:VRRM - Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $0.25 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.25, FiscalAI reports. Verra Mobility had a net margin of 13.95% and a return on equity of 57.45%. The firm had revenue of $223.57 million for the quarter, compared to analyst estimates of $223.34 million.

Verra Mobility Price Performance

VRRM stock traded down $0.18 during trading on Wednesday, reaching $14.32. 1,973,526 shares of the company were exchanged, compared to its average volume of 1,584,232. The company has a 50-day moving average of $15.28 and a two-hundred day moving average of $19.47. The company has a market capitalization of $2.17 billion, a price-to-earnings ratio of 16.85, a P/E/G ratio of 2.40 and a beta of 0.67. Verra Mobility has a twelve month low of $13.84 and a twelve month high of $25.83. The company has a debt-to-equity ratio of 3.49, a current ratio of 2.10 and a quick ratio of 2.00.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on VRRM shares. JPMorgan Chase & Co. decreased their price objective on shares of Verra Mobility from $21.00 to $19.00 and set a "neutral" rating for the company in a research report on Thursday, March 26th. Weiss Ratings downgraded shares of Verra Mobility from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday. Morgan Stanley dropped their target price on shares of Verra Mobility from $24.00 to $20.00 and set an "equal weight" rating for the company in a research report on Wednesday, February 25th. Robert W. Baird set a $24.00 target price on shares of Verra Mobility in a research report on Wednesday, February 25th. Finally, Wall Street Zen upgraded shares of Verra Mobility from a "hold" rating to a "buy" rating in a research report on Monday, April 27th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $23.50.

Hedge Funds Weigh In On Verra Mobility

A number of institutional investors have recently added to or reduced their stakes in VRRM. Royal Bank of Canada increased its position in Verra Mobility by 14.3% during the 1st quarter. Royal Bank of Canada now owns 148,464 shares of the company's stock worth $3,342,000 after purchasing an additional 18,562 shares in the last quarter. AQR Capital Management LLC grew its holdings in Verra Mobility by 21.7% during the 1st quarter. AQR Capital Management LLC now owns 34,501 shares of the company's stock worth $777,000 after acquiring an additional 6,153 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Verra Mobility by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 98,120 shares of the company's stock worth $2,209,000 after acquiring an additional 4,302 shares during the last quarter. Millennium Management LLC grew its holdings in Verra Mobility by 208.0% during the 1st quarter. Millennium Management LLC now owns 375,421 shares of the company's stock worth $8,451,000 after acquiring an additional 253,529 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in Verra Mobility by 33.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,182,297 shares of the company's stock worth $26,614,000 after acquiring an additional 293,082 shares during 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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