In a series of transactions, the Item Second Irrevocable Trust FBO Anne Marie Westphal, associated with Vertex (NASDAQ:VRTX) Inc. (NASDAQ:VERX), has sold a significant number of shares, amounting to over $5 million. Over the course of three days, shares were sold at prices ranging from $40.27 to $41.84, according to recent filings.
On October 7, 2024, the trust sold 48,136 shares at a weighted average price of $41.0163, with individual sales prices varying from $40.27 to $41.51. The following day, on October 8, an additional 27,732 shares were sold at an average of $41.3234, with a price range of $40.83 to $41.66. The sales continued on October 9, with 48,957 shares being sold at an average price of $41.3125, and the prices of these transactions spanned from $40.77 to $41.84.
The total value of the shares sold by the trust over this period amounted to approximately $5,142,877. After these transactions, the trust's remaining ownership in Vertex Inc. consists of 840,248.706 shares of Class A Common Stock.
The trust, which is listed under the Central Index Key number 0001818852, is a significant shareholder of Vertex Inc., a company specializing in prepackaged software services, headquartered in King of Prussia, Pennsylvania.
Investors often monitor the buying and selling activities of major shareholders as they can provide insights into the company's performance and potential future direction. The recent sales by the Item Second Irrevocable Trust FBO Anne Marie Westphal are notable due to the volume and total value of the shares sold.
In other recent news, Vertex Inc. has seen a significant 18.1% increase in total revenue and an 80% rise in adjusted EBITDA, primarily driven by growth in software subscription and cloud services. For Q2 2024, the company expects total revenue to range between $159 million to $162 million and adjusted EBITDA between $31 million to $33 million. Goldman Sachs (NYSE:GS) has maintained its Buy rating on Vertex, with a price target of $42, citing the company's unique story of revenue acceleration and margin expansion.
Vertex has also made strategic acquisitions to bolster its position in the tax technology sector. The company recently acquired ecosio, a European provider of e-invoicing and EDI solutions, for a potential total of $180 million. This acquisition is expected to enhance Vertex's tax compliance platform and its efficiency in tax mapping.
In addition to ecosio, Vertex has acquired advanced tax-specific artificial intelligence capabilities from Ryan, LLC. Analyst firms such as JMP Securities, BMO Capital, Citi, and Baird have updated their assessments of Vertex, with most maintaining or initiating positive ratings, and some increasing the company's price target. These recent developments underscore Vertex's continued growth trajectory in the tax technology sector.
InvestingPro Insights
The recent share sales by the Item Second Irrevocable Trust FBO Anne Marie Westphal come at a time when Vertex Inc. (NASDAQ:VERX) is experiencing strong market performance. According to InvestingPro data, Vertex's stock has seen a remarkable 69.34% price total return over the past year, with a 25.97% increase in the last six months alone. This upward trend is further evidenced by the stock trading at 96.81% of its 52-week high.
Vertex's financial metrics paint a picture of a growing company. With a market capitalization of $6.39 billion and revenue of $617.83 million in the last twelve months as of Q2 2024, the company has demonstrated a solid revenue growth of 16.61% during this period. However, investors should note that Vertex is trading at high valuation multiples, with a P/E ratio of 317.75 and a Price/Book ratio of 27.49.
InvestingPro Tips highlight that Vertex's net income is expected to grow this year, and 8 analysts have revised their earnings upwards for the upcoming period. These positive indicators suggest that despite the recent insider sales, there may be optimism about the company's future performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Vertex Inc., providing a deeper understanding of the company's financial health and market position.
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