Short Interest in Vertex Energy Rises 20.6% to 7.27M Shares; $150M Buyback Approved

VERXVERX

As of December 31, short interest in VERX jumped 20.6% to 7,266,393 shares, equating to 8.0% of float and a 7.1-day ratio. Vertex’s board approved a $150 million repurchase plan to buy up to 4.1% of shares outstanding.

1. Significant Increase in Short Interest

During December, short interest in VERX shares rose sharply to 7,266,393 shares as of December 31, representing a 20.6% increase from mid‐month levels. With an average daily trading volume of 1,022,407 shares, the resulting short‐interest ratio stands at approximately 7.1 days. Nearly 8% of VERX’s outstanding shares are currently sold short, indicating growing bearish sentiment among hedge funds and other market participants.

2. Institutional Ownership Movements

In the latest quarter filings, several institutional investors adjusted their stakes in VERX. Fifth Third Bancorp expanded its position by 31.0%, acquiring an additional 347 shares to hold 1,467 shares in total. Blue Trust Inc. increased its holding by 44.4%, adding 512 shares for a total of 1,664 shares. Advisors Asset Management Inc. boosted its stake by 25.7%, adding 395 shares to reach 1,933 shares. Meanwhile, Raymond James Financial Inc. and Johnson Financial Group Inc. initiated new positions valued at roughly $54,000 and $130,000, respectively. Institutions now control over 70% of the company’s stock.

3. Recent Earnings Performance and Share Repurchase Plan

In its most recent quarter, VERX reported earnings of $0.17 per share on revenue of $192.11 million, marking a 12.7% year‐over‐year increase in top‐line performance. The company delivered a negative net margin of 7.32% but achieved a positive return on equity of 26.84%. Concurrently, the board approved a $150 million share repurchase authorization, empowering management to buy back up to 4.1% of outstanding shares, a move commonly interpreted as confidence in the company’s valuation.

4. Analyst Coverage and Consensus Outlook

VERX is under coverage by 17 analysts, with the majority rating the stock as Buy and a smaller cohort assigning Hold or Sell opinions. The consensus view reflects a Moderate Buy stance based on aggregated research data. Recent analyst reports have varied in their assessments of upside potential, with several firms reiterating conviction in the company’s growth prospects tied to its specialty refining operations and sustainability initiatives.

Sources

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