Wall Street’s most bullish Verra Mobility Corporation (NASDAQ:VRRM) analysts are predicting the share price to blow past $15 per share during the next 12 months. The current median share price forecast by them is $14, suggesting that the stock could increase 6.87% in that time frame. The average price target of $14.33 calls for a nearly 9.39% increase in the stock price.
Verra Mobility Corporation (NASDAQ:VRRM) rose 1.16% in recent trade and currently has a stock-market value of $2.24B. The shares finished at $13.1, after trading as low as $12.82 earlier in the session. It hit an intraday high Friday at $13.57. Trading activity significantly improved as the volume at ready counter increased to 1,093,199 shares versus 675,775 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 388,865 shares. The stock is now 45.56% above against its bear-market low of $9 on January 03, 2019. It has retreated -3.59% since it’s 52-week high of $13.57 reached in April. Now the market price is up 31.13% on the year and up 34.22% YTD.
VRRM stock’s 50 day simple moving average (SMA 50) price is $11.04 and its 200-day simple moving average (SMA 200) price is $10.36. The company’s stock currently has a total float of 92.15M shares. Its weekly volatility is hovering around 3.73% and felt 3.9% volatility in price over a month. On the upside, the share price will test short term resistance at around $13.51. On a downside, the stock is likely to find some support, which begins at $12.76. The failure to get near-term support could push it to $12.41.
Moreover, it trades for 28.67 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 8.62x price/book and 6.04x price/sales. Compared to others, Verra Mobility Corporation is in a different league with regards to profitability, having net margins of -15.8%. To put some perspective around this, the industry’s average net margin is 4.38%. VRRM’s ROE is -15.9%, which is also considerably worse than the industry’s ROE of 5.2%. It’s also very liquid in the near term, with a current ratio of 2.7. The stock has a debt/capital of 2.88.
VRRM last reported earnings that receded expectations. The company raked in $474.27 per share, 0.4% change on the same period last year. That was worse than consensus for $474.27. Revenue for the recent quarter stood at $95.11 million, down -17% on last year and below the $98.3 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $106.4 million to $107.8 million, which should be compared with $0 generated last year. EPS is seen in a range of $0.04 to $0.06, against the 0 reported a year ago.