In a recent transaction on June 12, John H. Rexford, a director at Verra Mobility Corp (NASDAQ:VRRM), sold 9,005 shares of the company's Class A Common Stock at an average price of $26.3673, totaling over $237,000. The sales were made in multiple transactions with prices ranging from $26.25 to $26.475.
Following this transaction, Rexford's direct ownership in the company stands at 41,275 shares of Verra Mobility Corp. The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, dated June 14.
Verra Mobility Corp, which is classified under the Transportation Services sector, specializes in providing technology solutions that enable smart mobility across roadways. The company's stock trades on the NASDAQ under the ticker VRRM.
Investors often monitor the buying and selling activities of a company's directors and officers as they may provide insights into the company's future performance and current valuation. The sale by Rexford represents a notable change in his holdings, and thus may be of interest to current and potential shareholders.
The details of the sale, including the range of prices at which the shares were sold, were provided in a footnote to the SEC filing. The reporting person has agreed to provide additional information regarding the number of shares sold at each price upon request.
The address for Verra Mobility Corp is located at 1150 N. Alma School Road, Mesa, Arizona, with John H. Rexford also residing in the state. The company, formerly known as Gores Holdings II, Inc., has undergone a name change since its inception and continues to operate within the smart mobility and transportation sector.
In other recent news, Verra Mobility has surpassed Q1 2024 expectations, demonstrating significant growth in revenue, adjusted EBITDA, and earnings. This robust performance is attributed to strong domestic travel trends and the fleet management business. Furthermore, the company has raised its full-year 2024 guidance, reflecting confidence in continued positive performance across its segments.
The Commercial Services segment saw a 12% increase in revenue and a 14% growth in adjusted EBITDA year-over-year. The Government Solutions business also experienced an 8% rise in service revenue, in part due to a $2 million one-time contract benefit. However, a decline in T2 Systems product revenue was reported.
The company forecasts revenue and adjusted EBITDA to rise sequentially in Q2 and Q3, with a modest dip in Q4. Investments in customer-facing platforms for Government Solutions are ongoing and will continue into next year. The full-year CapEx is targeted at $90 million, with the first quarter ramping up but expected to stabilize. These are recent developments in Verra Mobility's operations.
InvestingPro Insights
Amidst the recent insider trading activity at Verra Mobility Corp (NASDAQ:VRRM), investors may find it beneficial to consider some key financial metrics and analyst insights that could impact their investment decisions. According to InvestingPro data, Verra Mobility Corp currently holds a market capitalization of approximately $4.3 billion. The company's stock is trading at a P/E ratio of 51.16, which reflects a premium valuation in the market. However, when adjusted for the last twelve months as of Q1 2024, the P/E ratio appears more modest at 40.08.
Despite the high earnings multiple, Verra Mobility Corp boasts an impressive gross profit margin of 61.49% for the same period, indicating strong profitability relative to its revenues. This is a significant metric for investors to consider, as it showcases the company's ability to efficiently manage its costs and maintain profitability.
InvestingPro Tips also highlight that Verra Mobility Corp is expected to have net income growth this year, which could be a positive signal for investors looking for companies with an upward earnings trajectory. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a solid financial position for meeting immediate liabilities.
While some analysts have revised their earnings expectations downwards for the upcoming period, it's important to note that the company is still predicted to be profitable this year. Verra Mobility Corp has demonstrated a strong return over the last five years, which may appeal to long-term investors.
For those interested in further analysis, InvestingPro offers additional tips on Verra Mobility Corp, which can be accessed at: https://www.investing.com/pro/VRRM. Moreover, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking an array of valuable insights and data to inform their investment strategies.
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