Verra Mobility Corporation (VRRM) Testing Investors’ Patience Right Now

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Fairview Capital Investment Manag… recently announced the acquisition of new stake in Verra Mobility Corporation (NASDAQ:VRRM). The institutional investor has increased its shareholding in the Industrials company by 76.09% to 12.12 million shares with purchase of 5.24 million shares. This fresh investment now brings its stake to 7.49% valued currently at $124.55 million. In addition, The Vanguard Group, Inc. raised its holdings by 16690.0 to 11.63 million shares. And BlackRock Fund Advisors has lifted its position by 0.94% or 76805.0 shares – to 8.26 million shares.

With over 0.85 million Verra Mobility Corporation (VRRM) shares trading Friday and a closing price of $10.63 on the day, the dollar volume was approximately $9.08 million. The shares have shown a negative weekly performance of -2.39% and its price on 07/24/20 lost nearly -1.85%. Currently, there are 160.92M common shares owned by the public and among those 129.45M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 8 analysts who have offered their price forecasts for VRRM have a consensus price objective of $12.64. The analysts have set the share’s price value over the next 12 months at a high of $14.00 and a low of $10.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Verra Mobility Corporation stock is 1.50 for the next 12 months. The average price target is 15.9% above its last price level and an upside to the estimated low will see the stock lose -6.3% over that period. But an upside of 24.07% will see the stock hit the forecast high price target while mean target price for the stock is $13.00.

Insiders at the company have transacted a total of 24 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 15 of these insider trades were purchases, accounting for 632,382 shares. Insider sales of the common stock occurred on 9 occasions, with total insider shares sold totaling 34,745,335 shares.

The top 3 mutual fund holders in Verra Mobility Corporation are Fidelity Small Cap America Fund, Mackenzie US Mid Cap Growth Class, and Fidelity Small Cap Growth Fund. Fidelity Small Cap America Fund owns 5.42 million shares of the company’s stock, all valued at over $55.7 million. The company bought an additional 5.42 million shares recently to bring their total holdings to about 3.35% of the shares outstanding. Fidelity Small Cap Growth Fund sold -0.65 million shares to bring its total holdings to over 4.07 million shares at a value of $41.83 million. Fidelity Small Cap Growth Fund now owns shares totaling to 2.52% of the shares outstanding.

Shares of Verra Mobility Corporation (NASDAQ: VRRM) opened at $10.75, down -$0.08 from a prior closing price of $10.83. However, the script later closed the day at $10.63, down -1.85%. The company’s stock has a 5-day price change of -2.39% and 44.82% over the past three months. VRRM shares are trading -24.02% year to date (YTD), with the 12-month market performance down to -23.25% lower. It has a 12-month low price of $5.63 and touched a high of $17.20 over the same period. Currently, 0.85 million shares have been traded, compared to an average intraday trading volume of 1.40 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.45%, -0.59%, and -12.78% respectively.

Institutional ownership of Verra Mobility Corporation (NASDAQ: VRRM) shares accounts for 100.00% of the company’s 160.92M shares outstanding. Mutual fund holders own 36.63%, while other institutional holders and individual stakeholders account for 43.13% and 15.72% respectively.

It has a market capitalization of $1.71B and a beta (3y monthly) value of 1.52. The stock’s trailing 12-month PE ratio is 46.83, while the earnings-per-share (ttm) stands at $0.23. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.56% over the week and 4.20% over the month.

Analysts forecast that Verra Mobility Corporation (VRRM) will achieve an EPS of -$0.09 for the current quarter, $0 for the next quarter and $0.22 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.16 while analysts give the company a high EPS estimate of -$0.04. Comparatively, EPS for the current quarter was $0.02 a year ago. Earnings per share for the fiscal year are expected to increase by 130.90%, and 833.30% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 8 brokerage firm advisors rate Verra Mobility Corporation (VRRM) as a “Strong Buy” at a consensus score of 1.50. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 0 of the 8 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the VRRM, a number of firms have released research notes about the stock. Northcoast stated their Buy rating for the stock in a research note on June 12, 2020, with the firm’s price target at . Credit Suisse coverage for the Verra Mobility Corporation (VRRM) stock in a research note released on January 24, 2020 offered a Outperform rating with a price target of . Credit Suisse was of a view on January 23, 2020 that the stock is Outperform, while BofA/Merrill gave the stock Buy rating on September 30, 2019, issuing a price target of $16. Goldman on their part issued Neutral rating on July 31, 2019.

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