Zacks Research Downgrades Verra Mobility (NASDAQ:VRRM) to Strong Sell

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

VRRM has been the topic of a number of other research reports. Weiss Ratings downgraded Verra Mobility from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, May 4th. CJS Securities downgraded 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. Wall Street Zen downgraded Verra Mobility from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Northcoast Research reaffirmed a “neutral” rating on shares of Verra Mobility in a research report on Wednesday, May 27th. Finally, William Blair downgraded Verra Mobility from an “outperform” rating to a “market perform” rating in a research report on Wednesday, May 27th. Seven equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, Verra Mobility currently has a consensus rating of “Reduce” and an average price target of $6.83.

Verra Mobility Price Performance

Shares of VRRM stock opened at $4.16 on Monday. Verra Mobility has a 1-year low of $3.40 and a 1-year high of $25.83. The stock’s 50-day moving average is $13.56 and its 200 day moving average is $17.86. The company has a market cap of $631.95 million, a P/E ratio of 5.07, a PEG ratio of 1.11 and a beta of 0.43. The company has a debt-to-equity ratio of 3.76, a current ratio of 1.89 and a quick ratio of 1.77.

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

Institutional Investors Weigh In On Verra Mobility

Several institutional investors have recently added to or reduced their stakes in VRRM. Norges Bank acquired a new stake in Verra Mobility in the fourth quarter worth about $68,608,000. River Road Asset Management LLC boosted its holdings in Verra Mobility by 441.6% in the fourth quarter. River Road Asset Management LLC now owns 2,984,760 shares of the company’s stock worth $66,888,000 after acquiring an additional 2,433,610 shares in the last quarter. Morgan Stanley boosted its holdings in Verra Mobility by 44.8% in the fourth quarter. Morgan Stanley now owns 4,194,005 shares of the company’s stock worth $93,988,000 after acquiring an additional 1,296,602 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in Verra Mobility by 71.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,924,781 shares of the company’s stock worth $65,544,000 after acquiring an additional 1,222,116 shares in the last quarter. Finally, William Blair Investment Management LLC boosted its holdings 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 worth $85,942,000 after acquiring an additional 896,564 shares in the last quarter.

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

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.