Vertex (NASDAQ:VERX) Stock Price Down 8.2% - Time to Sell?

Key Points

• Shares fell 8.2% during mid-day trading to as low as $11.27 (last at $11.4170) on ~342,247 shares traded, an 83% decline from the average daily volume after a prior close of $12.44.
• Analysts have cut price targets recently (examples: BMO $22→$16, Citigroup $22→$15, Citizens Jmp $37→$25, DA Davidson $13), leaving a MarketBeat consensus rating of "Hold" and a consensus price target of $20.86.
• Insiders have been buying: 437,740 insider shares were purchased in the last 90 days (notably Eric Andersen 40,000 shares at $12.91 and Jeffrey Westphal 150,000 at $12.53), and insiders now own 43.25% of the company.

Vertex, Inc. (NASDAQ:VERX - Get Free Report)'s stock price dropped 8.2% during mid-day trading on Thursday . The stock traded as low as $11.27 and last traded at $11.4170. Approximately 342,247 shares changed hands during mid-day trading, a decline of 83% from the average daily volume of 1,967,264 shares. The stock had previously closed at $12.44.

Analysts Set New Price Targets

VERX has been the subject of several recent research reports. DA Davidson set a $13.00 price target on shares of Vertex in a research report on Thursday, February 12th. BMO Capital Markets dropped their price target on shares of Vertex from $22.00 to $16.00 and set a "market perform" rating for the company in a research report on Thursday, February 12th. Citizens Jmp dropped 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. Citigroup dropped their price target on shares of Vertex from $22.00 to $15.00 and set a "neutral" rating for the company in a research report on Thursday, February 12th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Vertex in a research report on Monday. Five investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $20.86.

Vertex Trading Down 6.8%

The company has a market cap of $1.86 billion, a price-to-earnings ratio of 288.57, a price-to-earnings-growth ratio of 1.49 and a beta of 0.80. The company's fifty day moving average price is $12.83 and its two-hundred day moving average price is $17.78. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 1.30.

Vertex (NASDAQ:VERX - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $0.17 earnings per share for the quarter, hitting the consensus estimate of $0.17. The company had revenue of $194.71 million during 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%. The company's revenue was up 9.1% on a year-over-year basis. During the same quarter last year, the business posted $0.15 earnings per share. Research analysts expect that Vertex, Inc. will post 0.47 earnings per share for the current year.

Insider Activity at Vertex

In other news, Director Eric C. Andersen acquired 40,000 shares of the company's stock in a transaction dated Friday, February 20th. The stock was bought at an average price of $12.91 per share, with a total value of $516,400.00. Following the completion of the acquisition, 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. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Jeffrey Westphal acquired 150,000 shares of the company's stock in a transaction dated Tuesday, February 17th. The shares were purchased at an average cost of $12.53 per share, with a total value of $1,879,500.00. Following the acquisition, the insider owned 397,740 shares of the company's stock, valued at approximately $4,983,682.20. This represents a 60.55% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have bought 437,740 shares of company stock valued at $5,636,339. Company insiders own 43.25% of the company's stock.

Institutional Trading of Vertex

Hedge funds have recently modified their holdings of the company. Advisors Asset Management Inc. increased its holdings in shares of Vertex by 25.7% in 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 in the last quarter. Whittier Trust Co. of Nevada Inc. increased its holdings in shares of Vertex by 0.4% in the third quarter. Whittier Trust Co. of Nevada Inc. now owns 137,913 shares of the company's stock valued at $3,456,000 after purchasing an additional 564 shares in the last quarter. Verdence Capital Advisors LLC increased its holdings in shares of Vertex by 5.5% in the third quarter. Verdence Capital Advisors LLC now owns 11,538 shares of the company's stock valued at $296,000 after purchasing an additional 600 shares in the last quarter. Victory Capital Management Inc. increased its holdings in shares of Vertex by 9.9% in the third quarter. Victory Capital Management Inc. now owns 8,354 shares of the company's stock valued at $207,000 after purchasing an additional 753 shares in the last quarter. Finally, AlphaQuest LLC increased its holdings in shares of Vertex by 10.4% in the third quarter. AlphaQuest LLC now owns 10,732 shares of the company's stock valued at $266,000 after purchasing an additional 1,014 shares in the last quarter. Institutional investors and hedge funds own 70.32% of the company's stock.

Vertex Company Profile

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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