Verra Mobility (NASDAQ:VRRM) Shares Gap Down – Should You Sell?

Verra Mobility Corp (NASDAQ:VRRM) gapped down before the market opened on Thursday . The stock had previously closed at $5.61, but opened at $4.79. Verra Mobility shares last traded at $4.9320, with a volume of 1,041,882 shares.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on VRRM. Wall Street Zen downgraded shares of Verra Mobility from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Morgan Stanley set a $5.00 target price on Verra Mobility in a research report on Thursday. UBS Group restated a “neutral” rating and issued a $6.00 price target on shares of Verra Mobility in a research note on Friday. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $9.00 price target (down from $22.00) on shares of Verra Mobility in a report on Wednesday, May 27th. Finally, Weiss Ratings downgraded Verra Mobility from a “sell (d+)” rating to a “sell (d)” rating in a research report on Wednesday, June 17th. Eight research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Verra Mobility presently has a consensus rating of “Reduce” and an average target price of $7.00.

Verra Mobility Trading Down 4.3%

The company has a debt-to-equity ratio of 4.58, a current ratio of 2.06 and a quick ratio of 1.77. The firm has a market capitalization of $744.36 million, a PE ratio of 18.85 and a beta of 0.41. The company’s fifty day simple moving average is $4.50 and its 200-day simple moving average is $11.83.

Verra Mobility (NASDAQ:VRRM) last released its earnings results on Wednesday, August 5th. The company reported $0.38 EPS for the quarter, topping analysts’ consensus estimates of $0.33 by $0.05. Verra Mobility had a net margin of 4.40% and a return on equity of 64.39%. The business had revenue of $263.59 million during the quarter, compared to analysts’ expectations of $254.81 million. During the same quarter in the previous year, the company earned $0.34 earnings per share. The company’s quarterly revenue was up 11.7% on a year-over-year basis. As a group, sell-side analysts expect that Verra Mobility Corp will post 1.08 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Verra Mobility

Several hedge funds and other institutional investors have recently made changes to their positions in VRRM. Victory Capital Management Inc. grew its holdings in Verra Mobility by 1.1% during the 3rd quarter. Victory Capital Management Inc. now owns 45,583 shares of the company’s stock valued at $1,126,000 after purchasing an additional 511 shares in the last quarter. Lido Advisors LLC lifted its holdings in Verra Mobility by 6.3% in the 3rd quarter. Lido Advisors LLC now owns 10,025 shares of the company’s stock worth $248,000 after buying an additional 595 shares in the last quarter. Salomon & Ludwin LLC lifted its holdings in Verra Mobility by 100.7% in the 4th quarter. Salomon & Ludwin LLC now owns 1,497 shares of the company’s stock worth $34,000 after buying an additional 751 shares in the last quarter. ProShare Advisors LLC boosted its position in Verra Mobility by 3.2% in the 4th quarter. ProShare Advisors LLC now owns 31,067 shares of the company’s stock valued at $696,000 after buying an additional 969 shares during the last quarter. Finally, Smartleaf Asset Management LLC boosted its position in Verra Mobility by 46.7% in the 2nd quarter. Smartleaf Asset Management LLC now owns 3,414 shares of the company’s stock valued at $87,000 after buying an additional 1,087 shares during the last quarter.

Verra Mobility Company Profile

Verra Mobility, traded on the Nasdaq under the ticker VRRM, is a leading provider of smart mobility solutions designed to improve safety, efficiency and compliance for transportation authorities and commercial fleets. The company develops and operates automated traffic enforcement systems, toll and violation management platforms, and connected-vehicle services. Through its technology offerings, Verra Mobility helps public agencies enhance road safety, reduce congestion and streamline revenue collection for tolling and parking.

Verra Mobility’s core products include red-light and speed-camera enforcement programs, license plate recognition systems, and cloud-based violation processing software.