Vertex (NASDAQ:VERX) Trading Down 6% - Should You Sell?

Key Points

• Vertex shares fell about 6% on Monday, trading as low as $14.11 amid lighter-than-normal volume. The stock had closed at $14.93 the prior day.
• Wall Street sentiment is mixed but generally cautious: analysts have a consensus rating of “Hold” with an average price target of $20.93. Recent targets ranged from $15 to $21, including buy and neutral calls.
• The company recently reported better-than-expected quarterly results, with EPS of $0.17 versus $0.16 expected and revenue up 11.1% year over year to $196.65 million. Insiders also bought heavily in recent months, signaling confidence despite the stock’s weakness.

Vertex, Inc. (NASDAQ:VERX - Get Free Report)'s share price dropped 6% on Monday . The stock traded as low as $14.11 and last traded at $14.0390. Approximately 162,304 shares were traded during trading, a decline of 92% from the average daily volume of 1,919,691 shares. The stock had previously closed at $14.93.

Wall Street Analysts Forecast Growth

VERX has been the subject of a number of recent research reports. Stifel Nicolaus set a $16.00 price objective on Vertex in a research report on Wednesday, February 11th. Citigroup raised their price target on Vertex from $15.00 to $16.00 and gave the stock a "neutral" rating in a research note on Friday. The Goldman Sachs Group reissued a "buy" rating and issued a $21.00 price target on shares of Vertex in a research note on Thursday. Morgan Stanley reissued an "overweight" rating and issued a $19.00 price target on shares of Vertex in a research note on Friday. Finally, DA Davidson set a $15.00 price objective on Vertex in a research note on Friday. Seven equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Vertex has an average rating of "Hold" and a consensus price target of $20.93.

Vertex Trading Down 6.8%

The firm has a market capitalization of $2.23 billion, a PE ratio of -278.20 and a beta of 0.81. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.86 and a current ratio of 0.86. The firm has a fifty day moving average of $12.86 and a 200 day moving average of $16.97.

Vertex (NASDAQ:VERX - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.01. Vertex had a positive return on equity of 26.04% and a negative net margin of 0.84%.The company had revenue of $196.65 million for the quarter, compared to the consensus estimate of $194.82 million. During the same period in the previous year, the business earned $0.15 EPS. Vertex's revenue for the quarter was up 11.1% compared to the same quarter last year. Equities research analysts expect that Vertex, Inc. will post 0.48 EPS for the current year.

Insiders Place Their Bets

In other news, insider Jeffrey Westphal purchased 247,740 shares of the stock in a transaction dated Friday, February 13th. The stock was acquired at an average cost of $13.08 per share, for a total transaction of $3,240,439.20. Following the acquisition, the insider owned 247,740 shares of the company's stock, valued at $3,240,439.20. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Eric C. Andersen purchased 40,000 shares of the stock in a transaction dated Friday, February 20th. The stock was purchased 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 directly owned 150,341 shares in the company, valued at approximately $1,940,902.31. The trade was a 36.25% increase in their position. The SEC filing for this purchase provides additional information. 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

A number of institutional investors have recently added to or reduced their stakes in VERX. Advisors Asset Management Inc. grew its stake 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 worth $68,000 after purchasing an additional 395 shares in the last quarter. Whittier Trust Co. of Nevada Inc. boosted its stake in Vertex by 0.4% during 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 buying an additional 564 shares in the last quarter. Verdence Capital Advisors LLC raised its position in Vertex by 5.5% in the third quarter. Verdence Capital Advisors LLC now owns 11,538 shares of the company's stock worth $296,000 after acquiring an additional 600 shares in the last quarter. Victory Capital Management Inc. lifted its holdings in Vertex by 9.9% in the 3rd quarter. Victory Capital Management Inc. now owns 8,354 shares of the company's stock valued at $207,000 after acquiring an additional 753 shares during the last quarter. Finally, AlphaQuest LLC lifted its holdings in Vertex by 10.4% in the 3rd quarter. AlphaQuest LLC now owns 10,732 shares of the company's stock valued at $266,000 after acquiring an additional 1,014 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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