58.5 F
New York
Friday, November 27, 2020

Verra Mobility Corporation (NASDAQ:VRRM) Stock is Plummeting, Here is Why

Must read

ABB Ltd (NYSE:ABB) is Gaining Momentum on Earnings Catalyst

ABB Ltd (ABB) shares are trading at lower $26.55 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) on the Path to Profitability

ZIOPHARM Oncology Inc. (ZIOP) shares are trading at higher $2.92 and the avg recommendation for the stock is Moderate Buy. To add more color...

Can We Expect More Volatility From Box Inc. (BOX)?

Box Inc. (BOX) shares are trading at higher $18.15 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

AquaBounty Technologies Inc. (NASDAQ:AQB) Recent Earnings Shows Major Promise

AquaBounty Technologies Inc. (AQB) shares are trading at higher $4.16 and the avg recommendation for the stock is Strong Buy, while the current analyst...

Verra Mobility Corporation (VRRM) shares are trading at lower $12.12 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $13.36.

To add more color to this target, the company’s high over the last year is $17.20 and the low is $5.63. Over the last 52 weeks, VRRM is down -16.47% while the S&P 500 is up 15.13%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, VRRM reported a profit of $62.37 million. Verra Mobility Corporation also saw revenues increase to $96.91 million. In addition, VRRM has free cash flow of $26.03 million as of 09-2020. The company’s EBITDA came in at $46.31 million which compares well with its peers.

VRRM booked profit margins of 1.80%, its Return on Equity (ROE) is 2.10%, and its Return on Assets is 0.50%. All told, it is clear that, VRRM needs to be on your watchlist.

Find out when VRRM reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. VRRM has a short ratio of 10.03 and outstanding shares of 161.74M.

Company Outlook

VRRM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.39 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.04. Verra Mobility Corporation VRRM also noted assets of $1.37 billion at the end of the last quarter. Investors should also keep an eye on sector updates as VRRM has historically followed its peers on positive news.

All told, Verra Mobility Corporation VRRM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, VRRM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Verra Mobility Corporation VRRM is now commanding a market cap of 1.91B and a float of 129.96M. VRRM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of VRRM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in VRRM, either long or short, and we have not been compensated for this article.

Latest article

The Last Few Sessions Have Tenneco Inc. (TEN) Soaring

Tenneco Inc. (TEN) shares are trading at lower $11.13 and the avg recommendation for the stock is Hold, while the current analyst price target...

Rockwell Medical Inc. (NASDAQ:RMTI) Stock is Plummeting, Here is Why

Rockwell Medical Inc. (RMTI) shares are trading at lower $1.00 and the avg recommendation for the stock is Moderate Buy. To add more color...

Tractor Supply Company (TSCO)’s Stock is Jumping, Here is Why

Tractor Supply Company (TSCO) shares are trading at lower $133.90 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Can We Expect More Volatility From Newpark Resources Inc. (NR)?

Newpark Resources Inc. (NR) shares are trading at lower $1.71 and the avg recommendation for the stock is Moderate Buy. To add more color...

When Will TETRA Technologies Inc. (TTI) Slow Down

TETRA Technologies Inc. (TTI) shares are trading at lower $0.80 and the avg recommendation for the stock is Hold. To add more color to...