Vertex (NASDAQ:VERX) Reaches New 1-Year Low - Should You Sell?

Key Points

• Vertex, Inc. shares hit a new 12-month low at $27.03, down from a previous close of $33.07, with significant trading volume of 33,588 shares.
• Analyst ratings for Vertex show a consensus of "Moderate Buy", with a price target of $49.33 and a mix of buy and hold ratings from research firms.
• Insiders, including CEO David Destefano, sold a total of 3,520,170 shares recently, indicating a 99.74% decrease in one insider's position, raising concerns about insider confidence in the company's future.

Vertex, Inc. (NASDAQ:VERX - Get Free Report) hit a new 52-week low on Wednesday . The company traded as low as $29.89 and last traded at $27.03, with a volume of 33588 shares. The stock had previously closed at $33.07.

Analysts Set New Price Targets

A number of research firms have issued reports on VERX. The Goldman Sachs Group lowered their target price on Vertex from $50.00 to $43.00 and set a "buy" rating for the company in a report on Thursday. Bank of America decreased their price objective on Vertex from $42.00 to $34.00 and set a "neutral" rating for the company in a report on Friday. Morgan Stanley cut their target price on Vertex from $60.00 to $55.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 16th. Piper Sandler started coverage on Vertex in a research report on Monday, June 16th. They set an "overweight" rating and a $48.00 price target for the company. Finally, BNP Paribas began coverage on shares of Vertex in a report on Tuesday, April 22nd. They issued an "outperform" rating and a $54.00 price objective on the stock. Five analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company's stock. According to MarketBeat.com, Vertex currently has an average rating of "Moderate Buy" and an average price target of $43.69.

Vertex Stock Performance

The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 1.67. The stock's fifty day moving average is $35.63 and its two-hundred day moving average is $39.35. The firm has a market capitalization of $4.17 billion, a price-to-earnings ratio of -79.81, a P/E/G ratio of 3.32 and a beta of 0.70.

Vertex (NASDAQ:VERX - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $0.15 EPS for the quarter, beating analysts' consensus estimates of $0.14 by $0.01. The company had revenue of $184.56 million during the quarter, compared to the consensus estimate of $184.60 million. Vertex had a negative net margin of 7.09% and a positive return on equity of 28.28%. The company's quarterly revenue was up 14.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.15 EPS. On average, analysts predict that Vertex, Inc. will post 0.38 earnings per share for the current year.

Insiders Place Their Bets

In other Vertex news, insider Jeffrey Westphal sold 3,000,000 shares of the company's stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $38.45, for a total value of $115,350,000.00. Following the sale, the insider owned 7,895 shares in the company, valued at $303,562.75. This represents a 99.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Item Second Irr. Trust Fbo Ann sold 157,874 shares of the firm's stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $35.93, for a total value of $5,672,412.82. Following the completion of the sale, the insider directly owned 196,841 shares of the company's stock, valued at approximately $7,072,497.13. The trade was a 44.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 3,520,170 shares of company stock worth $134,479,744. Company insiders own 43.25% of the company's stock.

Hedge Funds Weigh In On Vertex

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Neuberger Berman Group LLC raised its position in shares of Vertex by 1.5% in the fourth quarter. Neuberger Berman Group LLC now owns 3,527,604 shares of the company's stock valued at $188,198,000 after purchasing an additional 53,829 shares during the period. Conestoga Capital Advisors LLC grew its stake in Vertex by 15.3% in the 2nd quarter. Conestoga Capital Advisors LLC now owns 3,398,435 shares of the company's stock valued at $120,084,000 after buying an additional 450,695 shares during the last quarter. Geneva Capital Management LLC raised its holdings in Vertex by 47.7% in the 2nd quarter. Geneva Capital Management LLC now owns 3,017,735 shares of the company's stock valued at $106,632,000 after acquiring an additional 974,530 shares during the period. FMR LLC raised its holdings in Vertex by 25.4% in the 4th quarter. FMR LLC now owns 2,868,438 shares of the company's stock valued at $153,031,000 after acquiring an additional 580,664 shares during the period. Finally, T. Rowe Price Investment Management Inc. lifted its position in Vertex by 63.0% during the first quarter. T. Rowe Price Investment Management Inc. now owns 2,429,416 shares of the company's stock worth $85,054,000 after acquiring an additional 939,031 shares during the last quarter. 70.32% of the stock is owned by institutional investors.

About Vertex

Vertex, Inc, together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools.