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

Pembroke Management LTD has reduced its stake in Vertex, Inc. (NASDAQ:VERX) by 2.6% during the third quarter. This information was disclosed in the company's latest Form 13F filing with the Securities and Exchange Commission. After selling 22,218 shares during this period, Pembroke now holds a total of 822,401 shares of Vertex. As a significant part of Pembroke's portfolio, Vertex represents about 4.1% of their total investments, making it their sixth largest holding. As of the end of the most recent reporting period, Pembroke's ownership in Vertex is valued at approximately $31,671,000, accounting for 0.53% of the company's shares.

Investment Activity and Performance

Other significant investors have also made changes to their holdings in Vertex. For example, Banque Pictet & Cie SA increased its stake in Vertex by an impressive 551.9% during the second quarter, now owning 949,540 shares worth around $34,231,000 after acquiring an additional 803,881 shares. Driehaus Capital Management LLC initiated a new position in Vertex during the same quarter, valued at about $22,173,000. Additionally, Allspring Global Investments Holdings LLC and Mizuho Markets Americas LLC both purchased new stakes in the company this year, amounting to roughly $12,043,000 and $12,402,000, respectively. Banco Santander S.A. also made a new investment of roughly $10,738,000 in Vertex during the second quarter. The overall landscape suggests that hedge funds and institutional investors currently own around 59.10% of Vertex's stock.

Analyst Ratings

Recently, multiple analysts have commented on Vertex's stock rating. Robert W. Baird initiated coverage on Vertex, giving it an "outperform" rating with a price target set at $43.00. Similarly, JMP Securities raised their price target from $42.00 to $47.00, awarding the company a "market outperform" rating. On the other hand, Baird R W upgraded Vertex to a "strong-buy" rating. In total, analysts have issued four hold ratings, seven buy ratings, and one strong buy rating for Vertex, resulting in an average rating of "Moderate Buy" and a mean price target of $37.30, according to MarketBeat.com.

Insider Trading Activity

In terms of insider trading, a significant transaction occurred when the insider Item Second Irr. Trust Fbo Jac sold 49,114 shares on October 9, at an average price of $41.31, totaling $2,028,899.34. Following this sale, the individual continues to hold 1,067,852 shares of Vertex, reflecting a valuation of approximately $44,112,966.12. This sale represents no change in their overall position percentage. Earlier, the CFO, John R. Schwab, also sold 25,000 shares at an average price of $35.81, with the total value reaching $895,250.00. He now retains 53,104 shares valued at about $1,901,654.24. Over the past three months, corporate insiders have sold a cumulative total of 1,629,244 shares, equating to a monetary value of $64,039,589. Notably, corporate insiders own about 44.58% of the total shares of Vertex.

Vertex Financial Overview

As of the latest trading session, Vertex's stock opened at $42.17. The company's financial health is illustrated by a current ratio and quick ratio both at 1.17, alongside a debt-to-equity ratio of 1.43. Over the past 50 days, the stock has shown an average of $39.16 and a long-term average of $36.00 over the last 200 days. Vertex has a market capitalization of $6.56 billion, with a price-to-earnings ratio of 351.42 and a price-to-earnings-growth ratio at 11.86, along with a beta of 0.67. In the past year, Vertex has seen a low of $21.92 and a high of $43.33.

In its last quarterly report, which was released on August 7, Vertex announced earnings of $0.15 per share, surpassing analysts' estimates of $0.13 by $0.02. The company reported revenues of $161.10 million, slightly exceeding the expected $160.66 million. Vertex achieved a net margin of 3.20% and a return on equity of 22.32%. Compared to the previous year, Vertex's revenue increased by 15.3% year-over-year, with earnings per share in the prior period being $0.04. Analysts are forecasting an earnings per share of 0.34 for the current fiscal year, indicating continued growth for Vertex, Inc.

Company Overview

Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions primarily for the retail, wholesale, and manufacturing sectors in both the United States and internationally. The company's offerings include tax determination, compliance and reporting with workflow management tools, tax data management, document management, analytics, and insights, as well as industry-specific and technology-specific solutions.

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