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

Zacks Research lowered shares of Verra Mobility (NASDAQ:VRRM) from a hold rating to a strong sell rating in a report released on Monday morning,Zacks.com reports.

Other equities analysts have also recently issued research reports about the company. Northcoast Research reissued a “neutral” rating on shares of Verra Mobility in a report on Wednesday, May 27th. William Blair cut Verra Mobility from an “outperform” rating to a “market perform” rating in a report on Wednesday, May 27th. Robert W. Baird decreased their price objective on Verra Mobility from $8.00 to $6.00 and set a “neutral” rating for the company in a report on Tuesday. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $9.00 price objective (down from $22.00) on shares of Verra Mobility in a report on Wednesday, May 27th. Finally, JPMorgan Chase & Co. reaffirmed an “underweight” rating and issued a $8.00 price target (down from $17.00) on shares of Verra Mobility in a report on Wednesday, May 27th. Seven equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $6.83.

Verra Mobility Stock Performance

Shares of VRRM stock opened at $4.16 on Monday. The stock has a market cap of $631.95 million, a PE ratio of 5.07, a price-to-earnings-growth ratio of 1.11 and a beta of 0.43. The business has a 50-day simple moving average of $13.56 and a 200-day simple moving average of $17.86. The company has a quick ratio of 1.77, a current ratio of 1.89 and a debt-to-equity ratio of 3.76. Verra Mobility has a 52-week low of $3.40 and a 52-week high of $25.83.

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

Hedge Funds Weigh In On Verra Mobility

Large investors have recently bought and sold shares of the business. SG Americas Securities LLC raised its holdings in Verra Mobility by 144.4% in the 4th quarter. SG Americas Securities LLC now owns 269,649 shares of the company’s stock worth $6,043,000 after purchasing an additional 159,331 shares during the period. Comerica Bank raised its holdings in Verra Mobility by 134.3% in the 4th quarter. Comerica Bank now owns 139,349 shares of the company’s stock worth $3,123,000 after purchasing an additional 79,887 shares during the period. Sunriver Management LLC raised its holdings in Verra Mobility by 10.7% in the 3rd quarter. Sunriver Management LLC now owns 2,284,774 shares of the company’s stock worth $56,434,000 after purchasing an additional 219,976 shares during the period. Thornburg Investment Management Inc. acquired a new position in Verra Mobility in the 3rd quarter worth about $7,597,000. Finally, William Blair Investment Management LLC raised its holdings in Verra Mobility by 34.7% in the 3rd quarter. William Blair Investment Management LLC now owns 3,479,448 shares of the company’s stock worth $85,942,000 after purchasing an additional 896,564 shares during the period.

Trending Headlines about Verra Mobility

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.