10% Owner Of Vertex Makes $4.13M Sale

ITEM SECOND IRR TRUST FBO KYLE R WESTPHAL ua of JEFFREY R WESTPHAL dated October , 10% Owner at Vertex VERX, executed a substantial insider sell on December 11, according to an SEC filing.

What Happened: 's recent move involves selling 75,000 shares of Vertex. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $4,125,501.

As of Thursday morning, Vertex shares are down by 0.0%, currently priced at $54.9.

About Vertex

Vertex Inc is a provider of tax technology and services. Its software, content, and services help customers stay in compliance with indirect taxes that occur in taxing jurisdictions all over the world. Vertex provides cloud-based and on-premise solutions to specific industries for every line of tax, including income, sales, consumer use, value-added, and payroll. The company offers solutions such as tax determination, Tax Data Management, document management, and compliance and reporting among others. The company derives revenue from software subscriptions.

Understanding the Numbers: Vertex's Finances

Revenue Growth: Vertex's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 17.52%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Holistic Profitability Examination:

• Gross Margin: With a high gross margin of 64.85%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Vertex's EPS reflects a decline, falling below the industry average with a current EPS of 0.05.

Debt Management: Vertex's debt-to-equity ratio surpasses industry norms, standing at 1.36. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: Vertex's current Price to Earnings (P/E) ratio of 288.95 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 13.6 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 92.63 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Understanding the Significance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Vertex's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.