Vertex (NASDAQ:VERX) Shares Gap Up After Insider Buying Activity

Vertex, Inc. (NASDAQ:VERX)’s stock price gapped up prior to trading on Thursday after an insider bought additional shares in the company. The stock had previously closed at $12.09, but opened at $12.93. Vertex shares last traded at $13.0590, with a volume of 626,927 shares trading hands.

Specifically, insider Jeffrey Westphal acquired 150,000 shares of the company’s stock in a transaction on Tuesday, February 17th. The shares were acquired at an average cost of $12.53 per share, with a total value of $1,879,500.00. Following the completion of the acquisition, the insider directly owned 397,740 shares in the company, valued at $4,983,682.20. This trade represents a 60.55% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jeffrey Westphal bought 247,740 shares of the firm’s stock in a transaction that occurred on Friday, February 13th. The shares were purchased at an average cost of $13.08 per share, for a total transaction of $3,240,439.20. Following the acquisition, the insider directly owned 247,740 shares in the company, valued at $3,240,439.20. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information.

Analysts Set New Price Targets

VERX has been the subject of several research analyst reports. Stifel Nicolaus set a $16.00 target price on shares of Vertex in a research report on Wednesday, February 11th. BMO Capital Markets lowered their price objective on Vertex from $22.00 to $16.00 and set a “market perform” rating for the company in a research report on Thursday, February 12th. Jefferies Financial Group downgraded Vertex from a “buy” rating to a “hold” rating and set a $16.00 price target on the stock. in a report on Wednesday, February 11th. Piper Sandler dropped their target price on shares of Vertex from $20.00 to $14.00 and set a “neutral” rating for the company in a research report on Thursday, February 12th. Finally, The Goldman Sachs Group reduced their price target on Vertex from $26.00 to $23.00 and set a “buy” rating on the stock in a research note on Thursday, February 12th. Eight equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $23.07.

Vertex Trading Up 6.0%

The stock has a market cap of $2.04 billion, a PE ratio of 320.33, a price-to-earnings-growth ratio of 1.44 and a beta of 0.59. The stock has a 50-day moving average price of $18.17 and a two-hundred day moving average price of $21.72. The company has a debt-to-equity ratio of 1.27, a current ratio of 1.01 and a quick ratio of 1.01.

Vertex (NASDAQ:VERX) last posted its earnings results on Wednesday, February 11th. The company reported $0.17 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.17. Vertex had a net margin of 0.96% and a return on equity of 25.25%. The firm had revenue of $194.71 million for the quarter, compared to the consensus estimate of $194.33 million. During the same period in the previous year, the firm posted $0.15 EPS. The business’s quarterly revenue was up 9.1% on a year-over-year basis. Sell-side analysts forecast that Vertex, Inc. will post 0.38 earnings per share for the current fiscal year.

Vertex declared that its board has approved a share repurchase program on Monday, November 3rd that permits the company to buyback $150.00 million in shares. This buyback authorization permits the company to purchase up to 4.1% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.

Institutional Trading of Vertex

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in VERX. Principal Financial Group Inc. lifted its position in shares of Vertex by 44.6% during the third quarter. Principal Financial Group Inc. now owns 892,949 shares of the company’s stock valued at $22,136,000 after buying an additional 275,520 shares during the last quarter. Gagnon Securities LLC increased its position in shares of Vertex by 40.3% in the 3rd quarter. Gagnon Securities LLC now owns 378,685 shares of the company’s stock valued at $9,388,000 after acquiring an additional 108,839 shares during the period. Herald Investment Management Ltd raised its stake in shares of Vertex by 81.8% in the third quarter. Herald Investment Management Ltd now owns 200,000 shares of the company’s stock worth $4,958,000 after purchasing an additional 90,000 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its stake in Vertex by 231.0% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 3,567,902 shares of the company’s stock valued at $88,448,000 after acquiring an additional 2,490,097 shares during the period. Finally, Bank of New York Mellon Corp boosted its holdings in Vertex by 14.7% in the second quarter. Bank of New York Mellon Corp now owns 201,797 shares of the company’s stock valued at $7,130,000 after purchasing an additional 25,812 shares during the last quarter. 70.32% of the stock is owned by hedge funds and other institutional investors.

About Vertex

Vertex Energy, Inc (NASDAQ: VERX) is a specialty refiner and marketer of transportation fuels and petrochemical feedstocks in the United States. The company collects and processes a variety of waste petroleum products, including used motor oil and industrial lubricants, which it converts into ultra-low-sulfur diesel, asphalt, and other refined products. By leveraging proprietary re-refining technologies and strategic feedstock sourcing, Vertex Energy aims to deliver cost-effective, lower-carbon fuel solutions to wholesale and retail customers across the country.

Headquartered in Houston, Texas, Vertex operates a network of refining and blending facilities in key regions, including the Central, Northeast and Mid-Atlantic markets.