Vestis Corporation (NYSE:VSTS) Stock Has Consensus Target Price of $12.66 According to Analysts

Key Points

• Analysts are generally bearish on Vestis: Eight analysts assign the stock a consensus “Reduce” rating, including four sells, three holds and one buy. The average 12-month price target is $12.66, below the reported trading price of $14.31.
• Vestis exceeded quarterly EPS expectations, reporting $0.18 versus the $0.10 consensus estimate, although revenue of $661.66 million fell short of expectations and the company posted a slightly negative net margin.
• Insider and institutional ownership remains significant: CEO James Barber purchased 84,500 shares, while institutional investors own 97.4% of the stock. Several hedge funds increased their positions, including Corvex Management, which added more than one million shares.

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

VSTS has been the subject of several recent research reports. Zacks Research lowered Vestis from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 10th. Weiss Ratings restated a "sell (d-)" rating on shares of Vestis in a research report on Friday, August 7th. The Goldman Sachs Group raised their price objective on Vestis from $8.20 to $9.30 and gave the company a "sell" rating in a research note on Tuesday, August 11th. Stifel Nicolaus lifted their target price on Vestis from $11.00 to $14.00 and gave the stock a "hold" rating in a report on Wednesday, August 12th. Finally, Barclays boosted their target price on Vestis from $9.00 to $11.00 and gave the company an "underweight" rating in a research report on Wednesday, August 12th.

Insiders Place Their Bets

In other news, CEO James Barber bought 84,500 shares of Vestis stock in a transaction dated Wednesday, September 2nd. The shares were acquired at an average price of $12.37 per share, with a total value of $1,045,265.00. Following the completion of the purchase, the chief executive officer owned 867,222 shares in the company, valued at $10,727,536.14. The trade was a 10.80% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. 15.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Vestis

Hedge funds have recently added to or reduced their stakes in the company. Corvex Management LP lifted its stake in Vestis by 5.4% in the fourth quarter. Corvex Management LP now owns 19,813,963 shares of the company's stock worth $132,159,000 after purchasing an additional 1,010,064 shares during the last quarter. SG Americas Securities LLC boosted its position in shares of Vestis by 571.0% during the first quarter. SG Americas Securities LLC now owns 1,979,460 shares of the company's stock valued at $15,559,000 after buying an additional 1,684,460 shares during the period. Invenomic Capital Management LP boosted its position in shares of Vestis by 35.1% during the fourth quarter. Invenomic Capital Management LP now owns 1,731,536 shares of the company's stock valued at $11,549,000 after buying an additional 449,497 shares during the period. Healthcare of Ontario Pension Plan Trust Fund grew its stake in shares of Vestis by 69.1% during the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,072,081 shares of the company's stock valued at $8,427,000 after buying an additional 437,965 shares during the last quarter. Finally, RBF Capital LLC grew its stake in shares of Vestis by 2.0% during the first quarter. RBF Capital LLC now owns 878,251 shares of the company's stock valued at $6,903,000 after buying an additional 17,009 shares during the last quarter. 97.40% of the stock is currently owned by institutional investors.

Vestis Price Performance

NYSE VSTS traded up $0.06 during trading on Tuesday, hitting $14.31. 144,083 shares of the stock traded hands, compared to its average volume of 1,598,396. The company has a quick ratio of 1.75, a current ratio of 2.17 and a debt-to-equity ratio of 1.38. Vestis has a 12-month low of $4.50 and a 12-month high of $16.90. The firm has a 50-day simple moving average of $13.45 and a 200-day simple moving average of $12.52. The company has a market capitalization of $1.89 billion, a P/E ratio of -285.34 and a beta of 0.90.

Vestis (NYSE:VSTS - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The company reported $0.18 earnings per share (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 business had revenue of $661.66 million for the quarter, compared to analysts' expectations of $668.94 million. As a group, analysts predict that Vestis will post 0.62 EPS for the current year.

About Vestis

Vestis Corporation NYSE: VSTS provides uniform and workplace services to businesses and organizations across the United States and Canada. The company supplies, rents, cleans, maintains and delivers workwear and uniforms, helping customers manage employee apparel and related workplace needs.

Its offerings include uniforms and protective workwear, floor mats, towels, linens, restroom supplies, first-aid products and other workplace solutions. Vestis serves customers in a range of industries, including manufacturing, healthcare, hospitality, food service, automotive, education, government and commercial services.

Vestis began operating as an independent publicly traded company in October 2023 following its separation from Aramark.

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