The ITEM Second Irrevocable Trust FBO Jacob J. Westphal, under the agreement of Jeffrey R. Westphal dated October 5, 2001, has reported significant stock sales in Vertex (NASDAQ:VRTX), Inc. (NASDAQ:VERX). According to the recent SEC filing, the trust sold a total of 135,146 shares of Vertex's Class A Common Stock over three consecutive days in October. The sales, which occurred on October 10, 11, and 14, were executed at weighted average prices ranging from $39.729 to $40.7688 per share. The total value of these transactions amounted to approximately $5.46 million.
Following these transactions, the trust now holds 932,706 shares of Vertex, Inc. The sales were conducted by Joshua Levine, acting as trustee.
In other recent news, Vertex Inc. has made significant strides in the tax technology sector, reporting an 18.1% increase in total revenue and a significant 80% rise in adjusted EBITDA, primarily driven by growth in software subscription and cloud services. The company anticipates total revenue for Q2 2024 to range between $159 million to $162 million and adjusted EBITDA between $31 million to $33 million.
Vertex has also recently completed the acquisition of ecosio, a European provider of e-invoicing and EDI solutions, and acquired advanced tax-specific artificial intelligence capabilities from Ryan, LLC, both of which are expected to enhance its tax compliance platform.
Goldman Sachs (NYSE:GS) maintains a Buy rating on Vertex with a steady price target of $42.00, while BMO Capital raised its price target for Vertex to $37 and Citi increased the company's price target to $38. JMP Securities maintained its Market Outperform rating for Vertex, projecting a 15% increase in revenue by 2024.
These recent developments underscore Vertex's continued growth in the tax technology sector, driven by strategic acquisitions and robust financial performance.
InvestingPro Insights
The recent stock sales by the ITEM Second Irrevocable Trust come at a time when Vertex, Inc. (NASDAQ:VERX) is experiencing strong market performance. According to InvestingPro data, Vertex's stock is trading near its 52-week high, with a robust 76.1% price total return over the past year. This aligns with an InvestingPro Tip indicating that the company has shown a high return over the last year.
Vertex's financial metrics reveal a company in a growth phase. With a market capitalization of $6.44 billion and revenue of $617.83 million in the last twelve months as of Q2 2024, the company has demonstrated a revenue growth of 16.61% during this period. An InvestingPro Tip suggests that net income is expected to grow this year, which could be driving investor confidence.
However, investors should note that Vertex is trading at high valuation multiples. The company's P/E ratio stands at 321.16, and its Price to Book ratio is 27.41, both of which are considered high. This is corroborated by InvestingPro Tips highlighting that Vertex is trading at high earnings, EBIT, EBITDA, and revenue valuation multiples.
For those interested in a deeper analysis, InvestingPro offers 14 additional tips for Vertex, Inc., providing a more comprehensive view of the company's financial health and market position.
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