Vertex director John Stamm sells $354k in company stock

Vertex (NASDAQ:VRTX ), Inc. (NASDAQ:VERX) director John Richard Stamm has sold a total of 10,000 shares of the company's Class A Common Stock, according to a recent SEC filing. The transactions, dated September 12, 2024, amounted to approximately $354,276, with the shares sold at weighted average prices ranging from $35.4145 to $35.4408.


The sales were executed in multiple transactions, with prices for the first batch of 5,000 shares ranging from $35.360 to $35.445, and for the second batch, prices varied from $35.380 to $35.555. These figures indicate a slight fluctuation in the trading price over the course of the sale.


On the same day, Stamm also acquired 5,000 shares of Vertex's Class A Common Stock through the exercise of options at a price of $3.734 per share. The total value for these option exercises amounted to $18,670, as reported in the SEC filing.


Following these transactions, Stamm's ownership in Vertex, Inc. stands at 16,635 shares of Class A Common Stock. The filing also noted that the options exercised were fully vested and exercisable, as indicated in the footnotes of the document.


Investors and followers of Vertex, Inc. often monitor insider transactions as they can provide insights into the company's performance and the confidence level of its executives and directors. The recent activity by Stamm reflects a significant sale of stock, balanced by an option exercise that increases his investment in the company at a considerably lower price per share.



In other recent news, Vertex Inc. has made significant strides in its financial performance and strategic acquisitions. The company has reported an 18.1% increase in total revenue and an 80% rise in adjusted EBITDA, primarily driven by growth in software subscription and cloud services. For Q2 2024, Vertex anticipates total revenue to range between $159 million to $162 million and adjusted EBITDA between $31 million to $33 million.


The company's acquisition of ecosio, a European provider of e-invoicing and EDI solutions, and advanced tax-specific artificial intelligence capabilities from Ryan, LLC, is expected to enhance the efficiency and accuracy of tax mapping. These acquisitions align with the company's growth trajectory and are anticipated to contribute positively to its market position.


Goldman Sachs maintained its Buy rating on Vertex with a steady price target of $42.00, while BMO Capital raised its price target for Vertex to $37, and Citi increased the company's price target to $38. JMP Securities maintained its Market Outperform rating for Vertex, projecting a 15% increase in revenue by 2024. These recent developments underscore Vertex's continued growth trajectory in the tax technology sector.
InvestingPro Insights


Vertex, Inc. (NASDAQ:VERX) director John Richard Stamm's recent stock transactions come at a time when the company's financial metrics and analyst outlook provide a mixed picture. According to real-time data from InvestingPro, Vertex has a market capitalization of $5.66 billion and is trading at a high earnings multiple, with a P/E ratio of 281.94. This high valuation is underscored by a P/E ratio adjusted for the last twelve months as of Q2 2024 at 228.3, suggesting investors have high expectations for the company's earnings growth.


InvestingPro Tips indicate that analysts are optimistic about Vertex's future, with 8 analysts revising their earnings upwards for the upcoming period, supporting the notion that net income is expected to grow this year. Additionally, the company has been profitable over the last twelve months, and analysts predict it will remain profitable this year. This positive sentiment is reflected in the company's stock performance, with a 75.16% return over the last year. However, it should be noted that Vertex does not pay a dividend to shareholders, which may influence investment decisions for income-focused investors.


From a valuation standpoint, Vertex is trading at high multiples across various metrics. The Price/Book ratio as of Q2 2024 stands at 24.28, and the company is also trading at high EBIT, EBITDA, and revenue valuation multiples. This indicates that the market is pricing the stock with a premium, possibly due to expected growth or unique market positioning.


For investors seeking a deeper analysis of Vertex, Inc., there are additional InvestingPro Tips available, which could provide further insights into the company's financial health and market position. Access to these tips can be found at InvestingPro's dedicated Vertex page: https://www.investing.com/pro/VERX.

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Source: Investing.com