Vertex (NASDAQ:VERX) Shares Gap Up Following Analyst Upgrade

Key Points

• Vertex shares gapped up after Piper Sandler raised its price target to $16 (maintaining a neutral rating); the stock opened at $13.95 versus the prior close of $12.66 and last traded around $14.11.
• Heavy insider buying — Director Eric C. Andersen bought 40,000 shares and insider Jeffrey Westphal bought 150,000 shares, with insiders purchasing 437,740 shares over the past 90 days and now owning 43.25% of the company.
• Analyst views are mixed with a consensus "Hold" rating and an average price target of $20.86, while institutional investors own roughly 70.3% of the stock.

Vertex, Inc. (NASDAQ:VERX - Get Free Report) gapped up before the market opened on Thursday after Piper Sandler raised their price target on the stock from $14.00 to $16.00. The stock had previously closed at $12.66, but opened at $13.95. Piper Sandler currently has a neutral rating on the stock. Vertex shares last traded at $14.1050, with a volume of 171,914 shares trading hands.

VERX has been the subject of several other reports. Citizens Jmp decreased their price objective on shares of Vertex from $37.00 to $25.00 and set a "market outperform" rating for the company in a report on Thursday, February 12th. Weiss Ratings reissued a "sell (d)" rating on shares of Vertex in a research note on Monday, April 20th. Jefferies Financial Group downgraded shares of Vertex from a "buy" rating to a "hold" rating and set a $16.00 price target for the company. in a report on Wednesday, February 11th. Morgan Stanley set a $18.00 target price on shares of Vertex in a report on Thursday, April 30th. Finally, BMO Capital Markets dropped their price target on Vertex from $22.00 to $16.00 and set a "market perform" rating on the stock in a report on Thursday, February 12th. Five research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $20.86.

Insider Activity at Vertex

In related news, Director Eric C. Andersen acquired 40,000 shares of the company's stock in a transaction on Friday, February 20th. The shares were purchased 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 $1,940,902.31. This represents a 36.25% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jeffrey Westphal bought 150,000 shares of the business's stock in a transaction on Tuesday, February 17th. The stock was bought at an average price of $12.53 per share, with a total value of $1,879,500.00. Following the transaction, the insider owned 397,740 shares in the company, valued at approximately $4,983,682.20. This represents a 60.55% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have purchased 437,740 shares of company stock valued at $5,636,339. 43.25% of the stock is currently owned by corporate insiders.

Institutional Trading of Vertex

Hedge funds and other institutional investors have recently modified their holdings of the company. Wasatch Advisors LP purchased a new position in Vertex in the second quarter valued at about $88,293,000. Massachusetts Financial Services Co. MA raised its stake in shares of Vertex by 231.0% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 3,567,902 shares of the company's stock worth $88,448,000 after purchasing an additional 2,490,097 shares in the last quarter. Legacy Advisors LLC lifted its holdings in shares of Vertex by 2,730.1% during the 3rd quarter. Legacy Advisors LLC now owns 1,343,779 shares of the company's stock valued at $33,312,000 after buying an additional 1,296,297 shares during the last quarter. Park West Asset Management LLC acquired a new stake in shares of Vertex during the 3rd quarter valued at about $30,988,000. Finally, Wellington Management Group LLP grew its stake in shares of Vertex by 76.7% in the 3rd quarter. Wellington Management Group LLP now owns 2,161,501 shares of the company's stock valued at $53,584,000 after buying an additional 937,905 shares in the last quarter. 70.32% of the stock is currently owned by hedge funds and other institutional investors.

Vertex Trading Up 15.5%

The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.98 and a current ratio of 0.98. The firm has a market cap of $2.34 billion, a P/E ratio of 365.64 and a beta of 0.81. The company has a 50 day moving average of $12.83 and a 200 day moving average of $17.04.

Vertex (NASDAQ:VERX - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The company reported $0.17 EPS for the quarter, hitting the consensus estimate of $0.17. The company had revenue of $194.71 million for the quarter, compared to analyst estimates of $194.33 million. Vertex had a net margin of 0.96% and a return on equity of 24.70%. Vertex's quarterly revenue was up 9.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.15 EPS. Analysts predict that Vertex, Inc. will post 0.47 EPS for the current fiscal year.

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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