Verra Mobility (NASDAQ:VRRM) Lowered to Hold Rating by Robert W. Baird

Key Points

• Robert W. Baird downgraded Verra Mobility from strong-buy to hold, adding to a generally cautious Street view on the stock. Overall, only one analyst now rates it a Buy, while six rate it Hold and two rate it Sell.
• Multiple firms cut or reiterated cautious ratings and price targets, including Deutsche Bank lowering its target to $9 from $22 and Morgan Stanley setting a $4 target. MarketBeat data shows a consensus rating of “Reduce” with an average price target of $11.67.
• The stock has been under heavy pressure, opening at $3.85 and trading near its 12-month low of $3.40, far below its 50-day and 200-day moving averages. The article also flags new negative developments, including Avis Budget Group ending a contract in September 2026 and multiple securities-law investigations.

Verra Mobility (NASDAQ:VRRM - Get Free Report) was downgraded by Robert W. Baird from a "strong-buy" rating to a "hold" rating in a report issued on Wednesday,Zacks.com reports.

Several other equities analysts have also commented on the company. Northcoast Research reiterated a "neutral" rating on shares of Verra Mobility in a research report on Wednesday. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $9.00 price objective (down from $22.00) on shares of Verra Mobility in a research report on Wednesday. Morgan Stanley set a $4.00 price objective on Verra Mobility in a research report on Wednesday. William Blair lowered Verra Mobility from an "outperform" rating to a "market perform" rating in a research report on Wednesday. Finally, CJS Securities lowered Verra Mobility from a "market outperform" rating to a "market perform" rating and set a $10.00 price target on the stock. in a research report on Wednesday. One equities research analyst has rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $11.67.

Verra Mobility Price Performance

Shares of Verra Mobility stock opened at $3.85 on Wednesday. The company has a current ratio of 1.89, a quick ratio of 1.77 and a debt-to-equity ratio of 3.76. The firm has a market capitalization of $584.85 million, a PE ratio of 4.70, a price-to-earnings-growth ratio of 2.64 and a beta of 0.67. The business's 50-day moving average price is $14.16 and its 200-day moving average price is $18.25. Verra Mobility has a 12 month low of $3.40 and a 12 month high of $25.83.

Verra Mobility (NASDAQ:VRRM - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $0.25 EPS for the quarter, meeting the consensus estimate of $0.25. The firm 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%.The company's revenue was up .1% on a year-over-year basis. During the same period in the prior year, the company earned $0.30 EPS. Verra Mobility has set its FY 2026 guidance at 1.320-1.380 EPS. Sell-side analysts forecast that Verra Mobility will post 1.22 EPS for the current fiscal year.

Hedge Funds Weigh In On Verra Mobility

Several institutional investors and hedge funds have recently bought and sold shares of VRRM. Norges Bank bought a new position in Verra Mobility during the 4th quarter worth approximately $68,608,000. River Road Asset Management LLC grew its position 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 acquiring an additional 2,433,610 shares during the last quarter. Morgan Stanley grew its position 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 acquiring an additional 1,296,602 shares during the last quarter. 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 worth $65,544,000 after buying an additional 1,222,116 shares during the last quarter. Finally, William Blair Investment Management LLC grew its position in shares of Verra Mobility by 34.7% in the 3rd quarter. William Blair Investment Management LLC now owns 3,479,448 shares of the company's stock worth $85,942,000 after buying an additional 896,564 shares during the last quarter.

Key Verra Mobility News

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

• Negative Sentiment: Verra Mobility announced Avis Budget Group is ending its contract in September 2026, a setback that could materially reduce revenue and segment profit next year. Verra Mobility Receives Termination of Agreement Notice From Avis Budget Group
• Negative Sentiment: Multiple law firms announced investigations into whether Verra Mobility and its executives violated federal securities laws, which can add legal overhang and investor concern. Holzer & Holzer Investor Alert
• Negative Sentiment: Additional securities-fraud investigations from Johnson Fistel and Block & Leviton suggest the stock’s decline has attracted more litigation risk after the Avis announcement. Block & Leviton Investigation
• Neutral Sentiment: Verra Mobility saw unusually heavy call-option trading, which may indicate speculation, but does not by itself confirm a fundamental turnaround.
• Neutral Sentiment: Northcoast Research reaffirmed a neutral rating, while JPMorgan reiterated underweight and cut its price target, reinforcing a cautious Street view.

Verra Mobility Company Profile

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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