KING OF PRUSSIA, PA—The ITEM Second Irrevocable Trust FBO Kyle R. Westphal, a major shareholder in Vertex (NASDAQ:VRTX), Inc. (NASDAQ:VERX), has recently sold a substantial portion of its holdings in the company. According to the latest SEC filing, the trust disposed of a total of 71,000 shares of Vertex's Class A Common Stock over two days, November 20 and 21.
The shares were sold at a weighted average price ranging from $52.1649 to $53.1272, amounting to a total transaction value of approximately $3.79 million. Following these transactions, the trust now holds 1,358,100 shares of Vertex.
The sales were executed as part of routine portfolio adjustments and reflect the trust's ongoing management of its investment in Vertex, a leader in tax technology solutions. The transactions were carried out under the oversight of trustee Joshua Levine, as indicated in the filing.
In other recent news, Vertex, Inc. has expanded its credit facilities from $200 million to $300 million, providing greater financial flexibility to support its operations and potential expansion plans. The company recently reported a third-quarter revenue of $170.4 million, marking a 17.5% increase year-over-year, primarily driven by a rise in software subscription and cloud revenue. Analysts from Goldman Sachs, BMO Capital Markets, and Stifel have upgraded their price targets for Vertex, reflecting optimism about its growth trajectory. Vertex's acquisition of ecosio also contributed to its cloud revenue growth and enhanced its e-invoicing capabilities. The company anticipates fourth-quarter 2024 revenue to be between $175 million and $178 million, with full-year revenue projected to be between $663.3 million and $666.3 million. However, the integration and investment in ecosio may temporarily impact adjusted EBITDA. These are recent developments that reflect Vertex's financial performance and strategic advancements.
InvestingPro Insights
The recent sale of Vertex, Inc. (NASDAQ:VERX) shares by the ITEM Second Irrevocable Trust FBO Kyle R. Westphal comes at a time when the company's stock is showing strong performance. According to InvestingPro data, Vertex has seen a remarkable 98.37% price total return year-to-date, with the stock trading at 99.39% of its 52-week high. This impressive rally aligns with one of the InvestingPro Tips, which notes that Vertex has experienced a "significant return over the last week" and a "strong return over the last month."
Despite the trust's decision to sell a portion of its holdings, Vertex's financial metrics suggest a company on solid footing. The company's revenue for the last twelve months as of Q3 2024 stood at $643.23 million, with a healthy revenue growth of 17.25% over the same period. This growth trajectory is supported by another InvestingPro Tip indicating that "net income is expected to grow this year."
However, investors should note that Vertex is currently trading at high valuation multiples. The company's P/E ratio (adjusted) for the last twelve months as of Q3 2024 is 226.54, which is significantly above market averages. This high valuation is corroborated by an InvestingPro Tip stating that Vertex is "trading at a high earnings multiple."
For those interested in a deeper analysis of Vertex's financial health and market position, InvestingPro offers 18 additional tips, providing a comprehensive view of the company's prospects and potential risks.
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