In the third quarter, Tensile Capital Management increased its stake in Vertex by 160,559 shares, totaling 3.8 million shares valued at $94.3 million, despite a $34.4 million decrease in position value. Vertex shares are down 65% over the past year, trading at $19.68 as of Friday. Tensile’s increased exposure to Vertex, which represents 11.8% of their AUM, signals confidence in the company’s long-term potential. Vertex, a tax technology solutions provider, generates revenue through software licenses and SaaS subscriptions, targeting large enterprises for tax compliance and automation solutions. In the third quarter, Vertex reported 12.7% revenue growth and strong cash generation, along with a new $150 million share repurchase program, indicating potential for long-term investors.

Read more at Nasdaq: Vertex Stock: Why One Fund Lifted Its $94.3 Million Position Even as Shares Sank