The ITEM Second Irrevocable Trust, under the administration of Anne Marie Westphal, recently executed significant stock sales of Vertex (NASDAQ:VRTX), Inc. (NASDAQ:VERX). On October 10 and 11, the trust sold a total of 75,175 shares of Vertex's Class A Common Stock. The sales were made at prices ranging from $39.38 to $40.835 per share, resulting in a total transaction value of approximately $3.02 million.
Following these transactions, the trust retains ownership of 765,073.706 shares. The sales were conducted through multiple transactions, with the weighted average prices for October 10 and 11 being $39.7269 and $40.4849, respectively.
In other recent news, Vertex Inc. continues to make strategic moves to bolster its position in the tax technology sector. The company recently completed the acquisition of ecosio, a European provider of electronic data interchange and e-invoicing solutions, for a potential total of $180 million. Additionally, Vertex acquired advanced tax-specific artificial intelligence capabilities from Ryan, LLC, aiming to enhance the efficiency and accuracy of tax mapping.
On the financial front, Vertex reported an 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 anticipates total revenue to range between $159 million to $162 million and adjusted EBITDA between $31 million to $33 million.
Analyst firms have also updated their assessments of Vertex. Goldman Sachs (NYSE:GS) maintained its Buy rating on Vertex with a steady price target of $42.00, citing the company's unique story of revenue acceleration and margin expansion. JMP Securities maintained its Market Outperform rating for Vertex, projecting a 15% increase in revenue by 2024. BMO Capital raised its price target for Vertex to $37, while Citi increased the company's price target to $38. Baird initiated coverage with an Outperform rating, emphasizing Vertex's strong growth potential. These 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 a "high return over the last year."
The company's financial health appears solid, with revenue reaching $617.83 million in the last twelve months as of Q2 2024, representing a 16.61% growth. This growth trajectory is supported by another InvestingPro Tip suggesting that "net income is expected to grow this year."
Despite the positive outlook, investors should note that Vertex is trading at relatively high multiples. The company's P/E ratio stands at 321.16, which corroborates the InvestingPro Tip stating that Vertex is "trading at a high earnings multiple." This valuation metric might provide context for the trust's decision to sell a portion of its holdings.
For readers seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Vertex, Inc., providing a deeper understanding of the company's financial position and market prospects.
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