Stock Buyback Program Initiated by Vertex (NASDAQ:VERX)

Vertex (NASDAQ:VERX) announced that its board has authorized a stock buyback program on Monday, November 3rd, RTT News reports. The company plans to buyback $150.00 million in shares. This buyback authorization permits the company to buy up to 4.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

VERX has been the subject of several analyst reports. Citigroup dropped their target price on shares of Vertex from $31.00 to $29.00 and set a “neutral” rating for the company in a research report on Tuesday, October 28th. DA Davidson upgraded shares of Vertex to a “hold” rating in a research report on Wednesday, October 22nd. JMP Securities set a $50.00 target price on Vertex and gave the company a “market outperform” rating in a report on Thursday, August 7th. Weiss Ratings reiterated a “sell (d)” rating on shares of Vertex in a research note on Wednesday, October 8th. Finally, Needham & Company LLC dropped their price objective on Vertex from $60.00 to $40.00 and set a “buy” rating for the company in a research report on Wednesday, August 6th. Nine investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $40.50.

Vertex Price Performance

Shares of VERX opened at $20.69 on Tuesday. Vertex has a 12-month low of $19.29 and a 12-month high of $60.71. The business has a 50-day simple moving average of $24.79 and a two-hundred day simple moving average of $31.63. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 1.36. The stock has a market cap of $3.30 billion, a PE ratio of -62.70, a PEG ratio of 4.64 and a beta of 0.63.

Vertex (NASDAQ:VERX) last released its quarterly earnings results on Monday, November 3rd. The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.01. The company had revenue of $192.11 million for the quarter, compared to analysts’ expectations of $191.62 million. Vertex had a positive return on equity of 27.16% and a negative net margin of 7.09%.The business’s quarterly revenue was up 12.7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.16 earnings per share. Vertex has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS. Analysts anticipate that Vertex will post 0.38 earnings per share for the current fiscal year.

About Vertex

Vertex, Inc, together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools.