Vertex (NASDAQ:VERX) Given New $17.00 Price Target at BMO Capital Markets

Key Points

• BMO Capital Markets raised its price target on Vertex (VERX) from $14.00 to $17.00 and maintained an "outperform" rating, implying roughly a 17.8% upside from the current share price.
• Vertex slightly beat the quarter with $0.17 EPS versus $0.16 expected and revenue of $196.7M (up 11.1% year-over-year), though the stock still trades at a high P/E (~361) and around $14.43 per share.
• Significant insider buying occurred recently—insiders bought 437,740 shares worth about $5.64M last quarter (insiders now own ~43.25% of shares) while institutional investors hold ~70.3%.

Vertex (NASDAQ:VERX - Get Free Report) had its price target raised by research analysts at BMO Capital Markets from $14.00 to $17.00 in a research report issued on Friday. The brokerage currently has an "outperform" rating on the stock. BMO Capital Markets' target price points to a potential upside of 17.84% from the stock's current price.

Several other equities analysts have also commented on the stock. DA Davidson set a $13.00 price objective on shares of Vertex in a report on Thursday, February 12th. Needham & Company LLC dropped their target price on shares of Vertex from $30.00 to $20.00 and set a "buy" rating for the company in a report on Wednesday, February 11th. The Goldman Sachs Group reissued a "buy" rating and issued a $21.00 target price on shares of Vertex in a research report on Thursday. Jefferies Financial Group cut Vertex from a "buy" rating to a "hold" rating and set a $16.00 price target on the stock. in a research note on Wednesday, February 11th. Finally, UBS Group set a $25.00 price target on Vertex in a research report on Thursday, February 12th. Six investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $20.79.

Vertex Stock Down 1.7%

Shares of NASDAQ:VERX opened at $14.43 on Friday. The company has a market capitalization of $2.31 billion, a price-to-earnings ratio of 361.02 and a beta of 0.81. Vertex has a 12-month low of $10.59 and a 12-month high of $42.44. The business has a 50-day moving average price of $12.86 and a 200 day moving average price of $16.97. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 1.30.

Vertex (NASDAQ:VERX - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.17 EPS for the quarter, beating analysts' consensus estimates of $0.16 by $0.01. The company had revenue of $196.65 million for the quarter, compared to analysts' expectations of $194.82 million. Vertex had a net margin of 0.96% and a return on equity of 24.70%. Vertex's revenue for the quarter was up 11.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.15 earnings per share. Sell-side analysts expect that Vertex will post 0.47 EPS for the current year.

Insider Buying and Selling

In other news, Director Eric C. Andersen acquired 40,000 shares of the company's stock in a transaction on Friday, February 20th. The shares were bought at an average cost of $12.91 per share, with a total value of $516,400.00. Following the transaction, the director owned 150,341 shares in the company, valued at approximately $1,940,902.31. This trade represents a 36.25% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Jeffrey Westphal acquired 247,740 shares of Vertex stock in a transaction dated Friday, February 13th. The stock was purchased at an average price of $13.08 per share, for a total transaction of $3,240,439.20. Following the completion of the acquisition, the insider directly owned 247,740 shares in the company, valued at approximately $3,240,439.20. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 437,740 shares of company stock valued at $5,636,339 in the last quarter. 43.25% of the stock is owned by insiders.

Hedge Funds Weigh In On Vertex

Several large investors have recently bought and sold shares of the business. Global Retirement Partners LLC acquired a new stake in Vertex in the fourth quarter valued at $32,000. Empowered Funds LLC purchased a new position in shares of Vertex in the 4th quarter valued at about $45,000. Raymond James Financial Inc. purchased a new position in shares of Vertex in the 2nd quarter valued at about $54,000. Advisors Asset Management Inc. raised its position in shares of Vertex by 36.9% during the 4th quarter. Advisors Asset Management Inc. now owns 3,320 shares of the company's stock worth $66,000 after acquiring an additional 895 shares in the last quarter. Finally, Assetmark Inc. raised its position in shares of Vertex by 49.1% during the 4th quarter. Assetmark Inc. now owns 4,180 shares of the company's stock worth $83,000 after acquiring an additional 1,376 shares in the last quarter. Hedge funds and other institutional investors own 70.32% of the company's stock.

About Vertex

Vertex Energy, Inc NASDAQ: VERX is a specialty refiner and marketer of transportation fuels and petrochemical feedstocks in the United States. The company collects and processes a variety of waste petroleum products, including used motor oil and industrial lubricants, which it converts into ultra-low-sulfur diesel, asphalt, and other refined products. By leveraging proprietary re-refining technologies and strategic feedstock sourcing, Vertex Energy aims to deliver cost-effective, lower-carbon fuel solutions to wholesale and retail customers across the country.

Headquartered in Houston, Texas, Vertex operates a network of refining and blending facilities in key regions, including the Central, Northeast and Mid-Atlantic markets.

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