Vanguard Group Inc. Reduces Position in Vestis Corporation $VSTS

Key Points

• Vanguard Group Inc. reduced its holdings in Vestis Corporation by 2.2%, owning approximately 11.9 million shares valued at about $118 million after selling 268,354 shares during the first quarter.
• Vestis reported a quarterly revenue of $673.80 million, down 3.5% year-over-year, with earnings per share of $0.05 that met analysts' expectations.
• Analysts have recently lowered their price targets for Vestis, with Barclays setting a target of $5.00 and JPMorgan Chase reducing theirs to $5.50, reflecting a generally negative outlook on the stock.

Vanguard Group Inc. trimmed its stake in shares of Vestis Corporation (NYSE:VSTS - Free Report) by 2.2% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 11,945,212 shares of the company's stock after selling 268,354 shares during the period. Vanguard Group Inc. owned approximately 9.07% of Vestis worth $118,258,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in VSTS. Bank of Montreal Can lifted its holdings in shares of Vestis by 11.1% during the 4th quarter. Bank of Montreal Can now owns 15,315 shares of the company's stock valued at $233,000 after buying an additional 1,534 shares during the period. Invesco Ltd. grew its stake in shares of Vestis by 2.7% during the 4th quarter. Invesco Ltd. now owns 606,901 shares of the company's stock valued at $9,249,000 after acquiring an additional 15,926 shares during the period. Raymond James Financial Inc. purchased a new position in Vestis during the fourth quarter valued at approximately $2,194,000. First Trust Advisors LP bought a new position in Vestis in the 4th quarter worth $22,936,000. Finally, Dimensional Fund Advisors LP boosted its stake in shares of Vestis by 46.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,095,278 shares of the company's stock worth $47,172,000 after acquiring an additional 980,303 shares during the period. Hedge funds and other institutional investors own 97.40% of the company's stock.

Wall Street Analysts Forecast Growth

VSTS has been the subject of a number of research analyst reports. Barclays cut their price objective on shares of Vestis from $10.00 to $5.00 and set an "underweight" rating for the company in a report on Friday, May 9th. JPMorgan Chase & Co. reduced their price target on shares of Vestis from $6.00 to $5.50 and set an "underweight" rating on the stock in a report on Thursday, August 7th. Finally, Wall Street Zen raised shares of Vestis from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Two analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average price target of $9.13.

Vestis Price Performance

Vestis stock traded up $0.0650 during mid-day trading on Friday, reaching $4.7550. 2,380,341 shares of the company's stock traded hands, compared to its average volume of 2,217,955. Vestis Corporation has a 12-month low of $4.32 and a 12-month high of $17.83. The company has a quick ratio of 1.42, a current ratio of 1.84 and a debt-to-equity ratio of 1.45. The stock has a 50 day moving average of $5.73 and a two-hundred day moving average of $7.89. The company has a market cap of $626.90 million, a price-to-earnings ratio of -20.67 and a beta of 0.96.

Vestis (NYSE:VSTS - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $0.05 earnings per share for the quarter, hitting analysts' consensus estimates of $0.05. The firm had revenue of $673.80 million for the quarter, compared to the consensus estimate of $673.65 million. Vestis had a negative net margin of 1.11% and a positive return on equity of 3.76%. The business's quarterly revenue was down 3.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.16 EPS. Equities analysts forecast that Vestis Corporation will post 0.7 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Keith A. Meister acquired 314,390 shares of the firm's stock in a transaction on Wednesday, May 28th. The shares were acquired at an average cost of $6.03 per share, for a total transaction of $1,895,771.70. Following the completion of the transaction, the director directly owned 18,803,899 shares in the company, valued at approximately $113,387,510.97. This trade represents a 1.70% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 13.60% of the stock is owned by insiders.

About Vestis

Vestis Corporation provides uniform rentals and workplace supplies in the United States and Canada. Its products include uniform options, such as shirts, pants, outerwear, gowns, scrubs, high visibility garments, particulate-free garments, and flame-resistant garments, as well as shoes and accessories; and workplace supplies, including managed restroom supply services, first-aid supplies and safety products, floor mats, towels, and linens.