Recently, Vertex Inc (Symbol: VERX) saw its shares rise above the average analyst 12-month target price of $41.18, trading at $41.26 per share. When a stock reaches this target, analysts typically face a choice: downgrade the stock due to valuation concerns or adjust their targets to reflect a higher price. Their reactions often hinge on the business developments behind the stock’s price movement. An optimistic outlook for Vertex could mean it’s time for analysts to raise their targets.
Within the Zacks coverage universe, there are 11 different analyst targets contributing to the average for Vertex Inc. However, this average is just a figure that combines various opinions. Some analysts have lower targets, with one predicting a price of $35.00, while another is much more optimistic, forecasting a target as high as $50.00. The standard deviation among these targets is $4.686, indicating some variation in expectations.
The purpose of looking at the average VERX price target is to benefit from a collective view of multiple analysts rather than relying on a single opinion. With the stock now trading above the average target of $41.18 per share, investors have a timely opportunity to reconsider their positions. This raises the question: is the price of $41.18 merely a waypoint on the journey to a higher target, or has the stock outpaced reasonable valuations, suggesting it may be time to cash in some profits? Below is a table detailing the current ratings from analysts following Vertex Inc:
| Recent VERX Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 6 | 6 | 6 | 5 |
| Buy ratings: | 2 | 2 | 2 | 2 |
| Hold ratings: | 4 | 4 | 4 | 4 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.83 | 1.83 | 1.83 | 1.91 |
The average rating shown here uses a scale from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. This article is based on data from Zacks Investment Research via Quandl.com. For more insights, access the latest Zacks research report on VERX — FREE.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
