Vertex (NASDAQ:VERX) Sets New 1-Year Low - Time to Sell?

Key Points

• Shares of Vertex (VERX) hit a new 52-week low around $11.53 amid downward price-target revisions from multiple analysts, leaving a consensus rating of "Hold" with an average price target of $23.07.
• The company reported quarterly EPS of $0.17 (in line with estimates) and revenue of $194.71M (+9.1% YoY), but trades at a high P/E (~291.8) with a thin net margin (~0.96%), suggesting modest profitability despite revenue growth.
• Insiders bought a total of 437,740 shares (~$5.64M) last quarter and now own about 43.25% of the stock, signaling significant insider accumulation despite the price decline.

Shares of Vertex, Inc. (NASDAQ:VERX - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $11.82 and last traded at $11.5250, with a volume of 186787 shares changing hands. The stock had previously closed at $12.02.

Analyst Ratings Changes

VERX has been the topic of several research analyst reports. Needham & Company LLC reduced their price objective on Vertex from $30.00 to $20.00 and set a "buy" rating on the stock in a research note on Wednesday, February 11th. Piper Sandler reduced their price target on shares of Vertex from $20.00 to $14.00 and set a "neutral" rating on the stock in a research report on Thursday, February 12th. The Goldman Sachs Group dropped their price objective on shares of Vertex from $26.00 to $23.00 and set a "buy" rating for the company in a research report on Thursday, February 12th. Stifel Nicolaus set a $16.00 target price on shares of Vertex in a report on Wednesday, February 11th. Finally, Citizens Jmp decreased their price target on shares of Vertex from $37.00 to $25.00 and set a "market outperform" rating for the company in a research report on Thursday, February 12th. Seven analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $23.07.

Vertex Stock Performance

The firm has a market cap of $1.86 billion, a price-to-earnings ratio of 291.82, a PEG ratio of 1.55 and a beta of 0.63. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 1.30. The company has a 50 day moving average of $15.31 and a 200 day moving average of $19.66.

Vertex (NASDAQ:VERX - Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The company reported $0.17 earnings per share for the quarter, meeting analysts' consensus estimates of $0.17. Vertex had a return on equity of 24.70% and a net margin of 0.96%.The firm had revenue of $194.71 million during the quarter, compared to analyst estimates of $194.33 million. During the same quarter last year, the firm earned $0.15 EPS. Vertex's quarterly revenue was up 9.1% on a year-over-year basis. As a group, equities research analysts expect that Vertex, Inc. will post 0.38 EPS for the current fiscal year.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Royal Bank of Canada grew its position in shares of Vertex by 36.3% during the 1st quarter. Royal Bank of Canada now owns 180,978 shares of the company's stock valued at $6,336,000 after buying an additional 48,181 shares during the last quarter. Advisors Asset Management Inc. grew its holdings in shares of Vertex by 25.7% during the first quarter. Advisors Asset Management Inc. now owns 1,933 shares of the company's stock valued at $68,000 after purchasing an additional 395 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Vertex by 4.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 81,935 shares of the company's stock valued at $2,869,000 after purchasing an additional 3,461 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Vertex by 13.8% during the 2nd quarter. Geode Capital Management LLC now owns 1,535,368 shares of the company's stock worth $54,258,000 after purchasing an additional 185,762 shares during the period. Finally, Police & Firemen s Retirement System of New Jersey lifted its holdings in shares of Vertex by 27.7% in the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 14,752 shares of the company's stock worth $521,000 after purchasing an additional 3,198 shares during the last quarter. 70.32% of the stock is currently owned by institutional investors.

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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