Verra Mobility Corporation (NASDAQ: VRRM) stock jumped 2.30% on Thursday to $18.70 against a previous-day closing price of $18.28. With 2.57 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.36 million shares. During the session, the Infrastructure Operations company that operates in wider Industrials sector, reached to the highest price of $18.71 whereas the lowest price it dropped to was $18.31. The 52-week range on VRRM shows that it touched its highest point at $21.54 and its lowest point at $12.76 during that stretch. It currently has a 1-year price target of $23.33. Beta for the stock currently stands at 1.23.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of VRRM was up-trending over the past week, with a rise of 6.07%, but this was down by -3.56% over a month. Three-month performance surged to 0.92% while six-month performance rose 9.04%. The stock gained 14.16% in the past year, while it has gained 35.21% so far this year. A look at the trailing 12-month EPS for VRRM yields 0.49 with Next year EPS estimates of 1.17. For the next quarter, that number is 0.27. This implies an EPS growth rate of 129.80% for this year and 9.32% for next year. EPS is expected to grow by 10.19% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 81.50%.
Float and Shares Shorts:
At present, 169.67 million VRRM shares are outstanding with a float of 165.30 million shares on hand for trading. On Aug 30, 2023, short shares totaled 3.86 million, which was 2.28% higher than short shares on Jul 30, 2023. In addition to Mr. David Martin Roberts as the firm’s Pres, CEO & Director, Mr. Craig C. Conti serves as its Exec. VP & CFO.
Through their ownership of 119.69% of VRRM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 65.43% of VRRM, in contrast to 44.24% held by mutual funds. Shares owned by individuals account for 15.35%. As the largest shareholder in VRRM with 13.30% of the stake, BlackRock Fund Advisors holds 19,995,630 shares worth 19,995,630. A second-largest stockholder of VRRM, The Vanguard Group, Inc., holds 14,574,751 shares, controlling over 9.69% of the firm’s shares. Darlington Partners Capital Manag is the third largest shareholder in VRRM, holding 9,018,403 shares or 6.00% stake. With a 6.58% stake in VRRM, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 9,890,343 shares are owned by the mutual fund manager. The Mackenzie US Mid Cap Growth Class, which owns about 3.24% of VRRM stock, is the second-largest Mutual Fund holder. It holds 4,873,880 shares valued at 102.3 million. Mackenzie US Small-Mid Cap Growth holds 3.05% of the stake in VRRM, owning 4,587,233 shares worth 96.29 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, VRRM reported revenue of $187.49M and operating income of $45.16M. The EBITDA in the recently reported quarter was $85.10M and diluted EPS was $0.15.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VRRM since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With VRRM analysts setting a high price target of $26.00 and a low target of $18.00, the average target price over the next 12 months is $23.33. Based on these targets, VRRM could surge 39.04% to reach the target high and fall by -3.74% to reach the target low. Reaching the average price target will result in a growth of 24.76% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded VRRM stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 14,947 shares were bought while 37,780 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 16 over the past year. The total number of shares bought during that period was 593,716 while 321,065 shares were sold.