Pembroke Management LTD Reduces Stake in Vertex, Inc. (NASDAQ:VERX)

Pembroke Management LTD has reduced its ownership of Vertex, Inc. (NASDAQ:VERX - Free Report) by 2.6% during the third quarter, as stated in their latest Form 13F filing with the Securities and Exchange Commission. After selling 22,218 shares, the firm now holds a total of 822,401 shares in Vertex, which constitutes approximately 4.1% of Pembroke Management LTD's overall portfolio, making Vertex the sixth largest investment in their holdings. As of the end of the latest reporting period, Pembroke Management LTD owned 0.53% of Vertex, valued at around $31,671,000.

Recent Developments in Vertex

Vertex, which specializes in tax software solutions, appears to be on the radar of various investors. Recent reports indicate that other prominent investors have also engaged in trading Vertex shares. For instance, Banque Pictet & Cie SA increased its stake in Vertex by a remarkable 551.9% during the second quarter, acquiring an additional 803,881 shares, bringing their total to 949,540 shares worth approximately $34,231,000. Driehaus Capital Management LLC and Allspring Global Investments Holdings LLC also entered new positions in Vertex during the first and second quarters, respectively. Overall, about 59.10% of Vertex's stock is now owned by hedge funds and institutional investors.

Analyst Insights

Vertex has attracted attention from several research analysts recently. On July 23rd, Robert W. Baird initiated coverage on Vertex shares with an "outperform" rating and set a target price of $43.00. JMP Securities raised their price target from $42.00 to $47.00 while offering a "market outperform" rating on the stock on July 31st. Baird also later increased their rating to a "strong buy". Currently, Vertex holds a moderate buy rating from analysts, with an average price target estimated at $37.30, as detailed by MarketBeat.com. The ratings reflect a mix of opinions, with four analysts suggesting a hold, seven encouraging a buy, and one promoting a strong buy position.

Insider Trading Activities

In related news concerning insider transactions at Vertex, one insider, Item Second Irr. Trust Fbo Jac, sold 49,114 shares on October 9th at an average price of $41.31, totaling approximately $2,028,899.34 from the sale. After this transaction, the insider's holdings decreased slightly, retaining 1,067,852 shares worth about $44,112,966.12. On another occasion, CFO John R. Schwab sold 25,000 shares at an average price of $35.81 on August 22nd, resulting in $895,250 in sales. Corporate insiders currently own around 44.58% of the company’s stock, with substantial trading activity seen over the past three months.

Performance and Outlook

As of Friday, Vertex's stock opened at $42.17. Financial indicators show that the company has a current ratio of 1.17 and a debt-to-equity ratio of 1.43. Vertex's market cap stands at $6.56 billion, and its price-to-earnings ratio is fairly high at 351.42, with the stock's performance reflecting a 12-month low of $21.92 and a high of $43.33. Vertex recently announced quarterly earnings on August 7th, reporting earnings per share of $0.15, beating analysts' expectations of $0.13. Revenue for the quarter totaled $161.10 million, slightly surpassing analyst projections of $160.66 million and marking a year-over-year revenue increase of 15.3%.

About Vertex

Vertex, Inc. operates by providing comprehensive enterprise tax technology solutions tailored for various sectors, including retail and manufacturing. Their services encompass tax determination, compliance and reporting, data management, document management, analytics, and industry-specific solutions, focusing on streamlining tax processes for businesses.

Final Thoughts

As investment interests in Vertex continue to evolve, the company's financial health and growth potential remain attractive to various investors. The interplay of insider trading and analyst ratings further highlights the dynamic environment surrounding Vertex, making it a notable entity in the market.

Vertex, Investment, Analysts