Verra Mobility (NASDAQ:VRRM) Shares Gap Down - Should You Sell?

Key Points

• Verra Mobility shares fell sharply, opening at $4.79 versus a prior close of $5.61 and last trading near $4.93, down 10.6%.
• Analysts have recently become more cautious, with multiple firms cutting ratings and price targets; the stock carries a consensus “Reduce” rating and a $6.50 average target.
• Despite the selloff, Verra Mobility beat quarterly expectations, reporting EPS of $0.38 versus $0.33 expected and revenue of $263.59 million, up 11.7% year over year.

Verra Mobility Corp (NASDAQ:VRRM - Get Free Report)'s stock price gapped down prior to trading on Thursday . The stock had previously closed at $5.61, but opened at $4.79. Verra Mobility shares last traded at $4.9320, with a volume of 1,041,882 shares trading hands.

Analyst Ratings Changes

A number of research firms recently issued reports on VRRM. CJS Securities lowered shares of Verra Mobility from a "market outperform" rating to a "market perform" rating and set a $10.00 target price on the stock. in a research note on Wednesday, May 27th. UBS Group lowered Verra Mobility from a "buy" rating to a "neutral" rating and dropped their price objective for the stock from $23.00 to $4.00 in a research note on Thursday, May 28th. Weiss Ratings downgraded Verra Mobility from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, June 17th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $9.00 price target (down from $22.00) on shares of Verra Mobility in a research report on Wednesday, May 27th. Finally, Robert W. Baird cut their price target on Verra Mobility from $8.00 to $6.00 and set a "neutral" rating for the company in a report on Tuesday, June 2nd. Eight investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Verra Mobility presently has a consensus rating of "Reduce" and an average target price of $6.50.

Verra Mobility Trading Down 10.6%

The company has a market cap of $761.81 million, a price-to-earnings ratio of 6.08 and a beta of 0.41. The company has a quick ratio of 1.77, a current ratio of 1.89 and a debt-to-equity ratio of 3.76. The company's fifty day moving average price is $4.47 and its two-hundred day moving average price is $12.00.

Verra Mobility (NASDAQ:VRRM - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.05. Verra Mobility had a return on equity of 55.59% and a net margin of 13.38%.The business had revenue of $263.59 million during the quarter, compared to analysts' expectations of $254.81 million. During the same period in the previous year, the business posted $0.34 earnings per share. The firm's revenue for the quarter was up 11.7% compared to the same quarter last year. Research analysts expect that Verra Mobility Corp will post 1.08 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Comerica Bank raised its stake in Verra Mobility by 134.3% during the 4th quarter. Comerica Bank now owns 139,349 shares of the company's stock worth $3,123,000 after buying an additional 79,887 shares during the period. Edgestream Partners L.P. raised its position in shares of Verra Mobility by 41.5% during the first quarter. Edgestream Partners L.P. now owns 818,595 shares of the company's stock worth $11,698,000 after purchasing an additional 240,163 shares during the period. River Road Asset Management LLC lifted its holdings in shares of 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 valued at $66,888,000 after purchasing an additional 2,433,610 shares in the last quarter. Oak Family Advisors LLC grew its position in shares of Verra Mobility by 17.7% in the 4th quarter. Oak Family Advisors LLC now owns 263,122 shares of the company's stock valued at $5,897,000 after purchasing an additional 39,624 shares during the period. Finally, Hawk Ridge Capital Management LP bought a new stake in Verra Mobility during the 1st quarter worth approximately $6,390,000.

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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