Morgan Stanley Has Lowered Expectations for Verra Mobility (NASDAQ:VRRM) Stock Price

Verra Mobility (NASDAQ:VRRM) had its target price cut by equities research analysts at Morgan Stanley from $24.00 to $20.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Morgan Stanley’s target price would suggest a potential upside of 27.23% from the company’s previous close.

A number of other equities research analysts have also commented on VRRM. UBS Group increased their price target on Verra Mobility from $29.00 to $31.00 and gave the stock a “buy” rating in a research report on Thursday, October 30th. Wall Street Zen upgraded Verra Mobility from a “buy” rating to a “strong-buy” rating in a report on Saturday, December 20th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Verra Mobility in a report on Monday, December 29th. Finally, JPMorgan Chase & Co. initiated coverage on shares of Verra Mobility in a report on Monday, January 26th. They set a “neutral” rating and a $25.00 price objective on the stock. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Verra Mobility currently has a consensus rating of “Hold” and an average price target of $26.50.

Verra Mobility Price Performance

Verra Mobility stock traded down $2.99 during mid-day trading on Wednesday, hitting $15.72. 1,491,876 shares of the company were exchanged, compared to its average volume of 1,443,304. The business has a fifty day moving average of $20.86 and a 200 day moving average of $22.62. The company has a quick ratio of 2.35, a current ratio of 2.45 and a debt-to-equity ratio of 2.55. Verra Mobility has a 1-year low of $15.90 and a 1-year high of $26.38. The company has a market capitalization of $2.51 billion, a PE ratio of 49.25, a price-to-earnings-growth ratio of 2.93 and a beta of 0.59.

Verra Mobility (NASDAQ:VRRM) last released its quarterly earnings results on Tuesday, February 24th. The company reported $0.30 EPS for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.02). The firm had revenue of $257.86 million during the quarter, compared to analyst estimates of $241.17 million. Verra Mobility had a net margin of 5.42% and a return on equity of 60.72%. Verra Mobility’s quarterly revenue was up 16.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.33 earnings per share. Verra Mobility has set its FY 2026 guidance at 1.320-1.380 EPS. As a group, sell-side analysts expect that Verra Mobility will post 1.08 earnings per share for the current year.

Institutional Investors Weigh In On Verra Mobility

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Wellington Management Group LLP grew its position in shares of Verra Mobility by 4.9% during the 4th quarter. Wellington Management Group LLP now owns 7,059,237 shares of the company’s stock worth $158,198,000 after buying an additional 329,264 shares during the period. JPMorgan Chase & Co. boosted its stake in Verra Mobility by 4.7% during the 3rd quarter. JPMorgan Chase & Co. now owns 6,223,576 shares of the company’s stock worth $153,722,000 after acquiring an additional 281,465 shares during the last quarter. Morgan Stanley grew its holdings in Verra Mobility by 44.8% during the fourth quarter. Morgan Stanley now owns 4,194,005 shares of the company’s stock valued at $93,988,000 after purchasing an additional 1,296,602 shares during the period. William Blair Investment Management LLC increased its stake in Verra Mobility by 34.7% in the third quarter. William Blair Investment Management LLC now owns 3,479,448 shares of the company’s stock valued at $85,942,000 after purchasing an additional 896,564 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in Verra Mobility by 0.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,316,850 shares of the company’s stock worth $74,333,000 after purchasing an additional 24,682 shares during the period.

Trending Headlines about Verra Mobility

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

• Positive Sentiment: Top‑line beat — Q4 revenue rose ~16% YoY to $257.9M, beating Street estimates and demonstrating continued demand growth. Article Title
• Positive Sentiment: New contract and strategic wins — announced a five‑year contract with the New York City Department of Transportation, which supports longer‑term revenue visibility. Article Title
• Positive Sentiment: Active capital allocation — repurchased $133.4M of common stock in Q4, which is shareholder‑friendly and can support EPS over time. Article Title
• Neutral Sentiment: Full‑year 2025 results — revenue for FY2025 was ~$979.1M and net income ~$136.6M; management provided slides and the earnings‑call transcript for deeper detail. Article Title Slides
• Negative Sentiment: EPS miss — reported $0.30 EPS vs. consensus ~$0.32 (and weaker GAAP/profit metrics highlighted on the call), which pressured the stock. Article Title
• Negative Sentiment: Margin compression & profitability hit — operating profit and net income declined materially YoY; management says MOSAIC investments and the NYC contract profile will reshape margin dynamics, implying near‑term margin pressure. Article Title
• Negative Sentiment: Higher capex and weaker cash flow metrics — capex rose and cash balances fell year‑over‑year while liabilities remain elevated, raising near‑term cash/coverage concerns for some investors. Article Title
• Negative Sentiment: Market reaction & guidance interpretation — several outlets framed the company’s FY‑26 outlook (revenue roughly ~$1.02B–$1.03B per management) and margin commentary as weaker than hoped, prompting sell‑side headlines and the stock decline. Article Title

Verra Mobility Company Profile

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.