Vestis Corporation (NYSE:VSTS) Given Consensus Recommendation of "Reduce" by Brokerages

Key Points

• Analysts hold a consensus “Reduce” rating on Vestis, with four sells, three holds and one buy among eight brokerages. The average 12-month price target is $12.66, below the reported share price of $13.91.
• Vestis reported quarterly EPS of $0.18, exceeding the $0.10 consensus estimate, while revenue of $661.66 million fell short of the $668.94 million estimate.
• CEO James Barber bought 84,500 shares worth approximately $1.05 million, and institutional investors and hedge funds own a substantial 97.4% of the company’s stock.

Vestis Corporation (NYSE:VSTS - Get Free Report) has been given an average rating of "Reduce" by the eight brokerages that are covering the stock, MarketBeat reports. Four investment analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and one has assigned a buy recommendation to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $12.66.

VSTS has been the subject of several recent research reports. Weiss Ratings reissued a "sell (d-)" rating on shares of Vestis in a research note on Friday, August 7th. Robert W. Baird lifted their target price on shares of Vestis from $15.00 to $16.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 12th. The Goldman Sachs Group lifted their target price on shares of Vestis from $8.20 to $9.30 and gave the stock a "sell" rating in a research note on Tuesday, August 11th. Barclays increased their target price on shares of Vestis from $9.00 to $11.00 and gave the company an "underweight" rating in a research report on Wednesday, August 12th. Finally, Stifel Nicolaus raised their price target on shares of Vestis from $11.00 to $14.00 and gave the stock a "hold" rating in a research note on Wednesday, August 12th.

Insider Buying and Selling

In other Vestis news, CEO James Barber acquired 84,500 shares of the business's stock in a transaction on Wednesday, September 2nd. The stock was bought at an average price of $12.37 per share, for a total transaction of $1,045,265.00. Following the acquisition, the chief executive officer owned 867,222 shares in the company, valued at approximately $10,727,536.14. The trade was a 10.80% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 15.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in VSTS. SG Americas Securities LLC boosted its position in shares of Vestis by 571.0% during the 1st quarter. SG Americas Securities LLC now owns 1,979,460 shares of the company's stock worth $15,559,000 after purchasing an additional 1,684,460 shares during the period. Jefferies Financial Group Inc. purchased a new stake in Vestis in the fourth quarter valued at approximately $8,419,000. Corvex Management LP raised its position in Vestis by 5.4% in the fourth quarter. Corvex Management LP now owns 19,813,963 shares of the company's stock valued at $132,159,000 after purchasing an additional 1,010,064 shares during the period. Bank of New York Mellon Corp acquired a new position in Vestis during the second quarter worth $9,368,000. Finally, UBS Group AG lifted its stake in Vestis by 121.2% during the fourth quarter. UBS Group AG now owns 885,984 shares of the company's stock worth $5,910,000 after purchasing an additional 485,396 shares in the last quarter. 97.40% of the stock is currently owned by institutional investors and hedge funds.

Vestis Trading Up 0.5%

Shares of NYSE VSTS traded up $0.07 during trading hours on Friday, reaching $13.91. The stock had a trading volume of 176,891 shares, compared to its average volume of 1,597,471. Vestis has a 52-week low of $4.02 and a 52-week high of $16.90. The firm has a market cap of $1.84 billion, a price-to-earnings ratio of -277.76 and a beta of 0.95. The business's fifty day moving average price is $13.94 and its two-hundred day moving average price is $11.77. The company has a current ratio of 2.17, a quick ratio of 1.75 and a debt-to-equity ratio of 1.38.

Vestis (NYSE:VSTS - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $0.18 EPS for the quarter, topping the consensus estimate of $0.10 by $0.08. Vestis had a positive return on equity of 7.27% and a negative net margin of 0.20%.The company had revenue of $661.66 million for the quarter, compared to the consensus estimate of $668.94 million. Analysts expect that Vestis will post 0.62 EPS for the current fiscal year.

Vestis Company Profile

Vestis Corporation NYSE: VSTS is a provider of workplace apparel and facility services serving businesses across the United States and Canada. The company helps organizations manage employee uniforms, workwear and related workplace needs through rental, direct-sale and service programs.

Its offerings include uniforms and career apparel, protective clothing, industrial workwear, floor mats, towels, linens and restroom supplies. Vestis also provides services such as garment cleaning, repair, replacement and delivery, allowing customers to outsource the ongoing management of workplace apparel and facility products.

Vestis was established as an independent public company in 2023 following the separation of Aramark Uniform Services from Aramark.

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