Verra Mobility (NASDAQ:VRRM) Lowered to Strong Sell Rating by Zacks Research

Verra Mobility (NASDAQ:VRRM) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Monday,Zacks.com reports.

Other analysts have also issued reports about the stock. CJS Securities lowered shares of Verra Mobility from a “market outperform” rating to a “market perform” rating and set a $10.00 price objective on the stock. in a research report on Wednesday, May 27th. Robert W. Baird dropped their target price on Verra Mobility from $8.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $9.00 target price (down from $22.00) on shares of Verra Mobility in a research report on Wednesday, May 27th. UBS Group lowered Verra Mobility from a “buy” rating to a “neutral” rating and dropped their target price for the company from $23.00 to $4.00 in a research report on Thursday, May 28th. Finally, Wall Street Zen lowered Verra Mobility from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Seven analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Verra Mobility has a consensus rating of “Reduce” and a consensus price target of $6.83.

Verra Mobility Stock Down 14.9%

Shares of NASDAQ VRRM opened at $4.16 on Monday. The firm’s 50-day moving average price is $13.56 and its 200-day moving average price is $17.86. The company has a current ratio of 1.89, a quick ratio of 1.77 and a debt-to-equity ratio of 3.76. The stock has a market capitalization of $631.95 million, a price-to-earnings ratio of 5.07, a P/E/G ratio of 1.11 and a beta of 0.43. Verra Mobility has a 12-month low of $3.40 and a 12-month high of $25.83.

Verra Mobility (NASDAQ:VRRM) last announced its earnings results on Wednesday, May 6th. The company reported $0.25 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.25. The firm had revenue of $223.57 million for the quarter, compared to analysts’ expectations of $223.34 million. Verra Mobility had a net margin of 13.38% and a return on equity of 55.59%. The business’s revenue was up .1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.30 EPS. Verra Mobility has set its FY 2026 guidance at 1.320-1.380 EPS. On average, equities research analysts anticipate that Verra Mobility will post 1.08 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. SG Americas Securities LLC increased its position in shares of Verra Mobility by 144.4% during the fourth quarter. SG Americas Securities LLC now owns 269,649 shares of the company’s stock worth $6,043,000 after acquiring an additional 159,331 shares during the period. Comerica Bank increased its position in shares of Verra Mobility by 134.3% during the fourth quarter. Comerica Bank now owns 139,349 shares of the company’s stock worth $3,123,000 after acquiring an additional 79,887 shares during the period. Sunriver Management LLC increased its position in shares of Verra Mobility by 10.7% during the third quarter. Sunriver Management LLC now owns 2,284,774 shares of the company’s stock worth $56,434,000 after acquiring an additional 219,976 shares during the period. Thornburg Investment Management Inc. purchased a new position in shares of Verra Mobility during the third quarter worth approximately $7,597,000. Finally, William Blair Investment Management LLC increased its position in shares of Verra Mobility by 34.7% during the third quarter. William Blair Investment Management LLC now owns 3,479,448 shares of the company’s stock worth $85,942,000 after acquiring an additional 896,564 shares during the period.

Verra Mobility News Summary

Here are the key news stories impacting Verra Mobility this week:

• Positive Sentiment: Verra Mobility said it has begun a CEO transition and appointed Jon Keyser as interim CEO, which may help provide leadership stability after the recent turmoil. Verra Mobility Initiates CEO Transition
• Neutral Sentiment: Several law firms announced investigations into possible securities law violations tied to the company’s prior guidance and disclosure practices. These headlines add uncertainty but do not by themselves prove wrongdoing. VRRM SHAREHOLDER ALERT
• Neutral Sentiment: UBS and Robert W. Baird both cut their views on Verra Mobility, with Baird lowering its price target to $6 and UBS downgrading the stock to Neutral, reflecting a much weaker outlook after the contract loss. UBS Downgrades Verra Mobility Corporation
• Negative Sentiment: The biggest driver is Avis Budget Group terminating a key contract, which has triggered a steep selloff because it materially reduces Verra Mobility’s revenue and profit outlook. CEO Leaves Amid Company Receipt of Termination Notice
• Negative Sentiment: Multiple reports also highlighted that the stock had already plunged following the revenue guidance cut, reinforcing concerns that earnings expectations may need to come down further. Levi & Korsinsky Announces Investigation

About Verra Mobility

Verra Mobility, traded on the Nasdaq under the ticker VRRM, is a leading provider of smart mobility solutions designed to improve safety, efficiency and compliance for transportation authorities and commercial fleets. The company develops and operates automated traffic enforcement systems, toll and violation management platforms, and connected-vehicle services. Through its technology offerings, Verra Mobility helps public agencies enhance road safety, reduce congestion and streamline revenue collection for tolling and parking.

Verra Mobility’s core products include red-light and speed-camera enforcement programs, license plate recognition systems, and cloud-based violation processing software.