It was reported on October 15, that ITEM SECOND IRR TRUST FBO ANNE MARIE WESTPHAL ua of JEFFREY R WESTPHAL dated October , 10% Owner at Vertex VERX executed a significant insider sell, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, sold 75,175 shares of Vertex. The total transaction value is $3,018,885.

As of Wednesday morning, Vertex shares are up by 0.41%, currently priced at $41.43.

All You Need to Know 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.

Financial Insights: Vertex

Revenue Growth: Vertex’s revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 15.33%. This indicates a substantial increase in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Evaluating Earnings Performance:

• Gross Margin: Achieving a high gross margin of 63.74%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Vertex’s EPS reflects a decline, falling below the industry average with a current EPS of 0.03.

Debt Management: Vertex’s debt-to-equity ratio stands notably higher than the industry average, reaching 1.51. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Financial Valuation:

• Price to Earnings (P/E) Ratio: Vertex’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 317.23.

• Price to Sales (P/S) Ratio: The current P/S ratio of 10.47 is above industry norms, reflecting an elevated valuation for Vertex’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Vertex’s EV/EBITDA ratio, surpassing industry averages at 76.18, positions it with an above-average valuation in the market.

Market Capitalization Analysis: The company’s market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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.