Verra Mobility (NASDAQ:VRRM) Lowered to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Verra Mobility from “hold” to “strong sell,” adding to a wave of bearish analyst actions on the stock.
• The stock fell sharply, opening at $4.16 and down 14.9%, after a major contract loss and broader concerns hit the company’s outlook.
• Analyst sentiment has deteriorated, with UBS, Weiss Ratings, and others also cutting their views; MarketBeat now shows an average rating of “Reduce” and a consensus price target of $6.83.

Verra Mobility (NASDAQ:VRRM - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Monday,Zacks.com reports.

Several other brokerages also recently weighed in on VRRM. Morgan Stanley set a $4.00 target price on shares of Verra Mobility in a report on Wednesday, May 27th. Weiss Ratings cut shares of Verra Mobility from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, May 4th. Northcoast Research reiterated a "neutral" rating on shares of Verra Mobility in a research note on Wednesday, May 27th. UBS Group cut shares of Verra Mobility from a "buy" rating to a "neutral" rating and decreased their price target for the stock from $23.00 to $4.00 in a research note on Thursday, May 28th. Finally, CJS Securities cut shares of 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 note on Wednesday, May 27th. Seven research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, Verra Mobility currently has an average rating of "Reduce" and a consensus price target of $6.83.

Verra Mobility Trading Down 14.9%

Shares of Verra Mobility stock opened at $4.16 on Monday. The company has a market capitalization of $631.95 million, a P/E ratio of 5.07, a P/E/G ratio of 1.11 and a beta of 0.43. The company has a debt-to-equity ratio of 3.76, a quick ratio of 1.77 and a current ratio of 1.89. The company has a fifty day moving average of $13.56 and a 200 day moving average of $17.86. Verra Mobility has a fifty-two week low of $3.40 and a fifty-two week high of $25.83.

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

Institutional Trading of Verra Mobility

Hedge funds have recently bought and sold shares of the stock. Global Retirement Partners LLC purchased a new stake in Verra Mobility in the 4th quarter worth $27,000. Caitong International Asset Management Co. Ltd raised its position in shares of Verra Mobility by 967.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,260 shares of the company's stock valued at $28,000 after buying an additional 1,142 shares in the last quarter. Rothschild Investment LLC raised its position in shares of Verra Mobility by 238.3% during the 3rd quarter. Rothschild Investment LLC now owns 1,167 shares of the company's stock valued at $29,000 after buying an additional 822 shares in the last quarter. Salomon & Ludwin LLC raised its position in shares of Verra Mobility by 100.7% during the 4th quarter. Salomon & Ludwin LLC now owns 1,497 shares of the company's stock valued at $34,000 after buying an additional 751 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its position in shares of Verra Mobility by 439.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,494 shares of the company's stock valued at $38,000 after buying an additional 1,217 shares in the last quarter.

Key Stories Impacting Verra Mobility

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

• Positive Sentiment: Verra Mobility said it has begun a CEO transition and appointed Jon Keyser as interim CEO, which may help provide leadership stability after the recent turmoil. Verra Mobility Initiates CEO Transition
• Neutral Sentiment: Several law firms announced investigations into possible securities law violations tied to the company’s prior guidance and disclosure practices. These headlines add uncertainty but do not by themselves prove wrongdoing. VRRM SHAREHOLDER ALERT
• Neutral Sentiment: UBS and Robert W. Baird both cut their views on Verra Mobility, with Baird lowering its price target to $6 and UBS downgrading the stock to Neutral, reflecting a much weaker outlook after the contract loss. UBS Downgrades Verra Mobility Corporation
• Negative Sentiment: The biggest driver is Avis Budget Group terminating a key contract, which has triggered a steep selloff because it materially reduces Verra Mobility’s revenue and profit outlook. CEO Leaves Amid Company Receipt of Termination Notice
• Negative Sentiment: Multiple reports also highlighted that the stock had already plunged following the revenue guidance cut, reinforcing concerns that earnings expectations may need to come down further. Levi & Korsinsky Announces Investigation

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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