Vestis (NYSE:VSTS) Shares Gap Up on Insider Buying Activity

Key Points

• Vestis shares gapped up 4.4%, opening at $13.12 versus a prior close of $12.54, following insider buying activity.
• CEO James Barber purchased 84,500 shares at an average price of $12.37, increasing his direct stake by 10.8% to 867,222 shares.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and a $12.66 price target; Vestis nevertheless exceeded quarterly EPS expectations, reporting $0.18 versus the $0.10 consensus estimate.

Vestis Corporation (NYSE:VSTS - Get Free Report) shares gapped up prior to trading on Friday following insider buying activity. The stock had previously closed at $12.54, but opened at $13.12. Vestis shares last traded at $13.13, with a volume of 124,476 shares changing hands.

Specifically, CEO James Barber acquired 84,500 shares of the business's stock in a transaction dated Wednesday, September 2nd. The shares were acquired 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 directly owned 867,222 shares of the company's stock, valued at approximately $10,727,536.14. This trade represents a 10.80% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Wall Street Analyst Weigh In

VSTS has been the topic of a number of research reports. JPMorgan Chase & Co. lifted their price target on shares of Vestis from $11.00 to $13.00 and gave the company an "underweight" rating in a research note on Thursday, August 13th. The Goldman Sachs Group increased their price objective on shares of Vestis from $8.20 to $9.30 and gave the stock a "sell" rating in a research report on Tuesday, August 11th. William Blair upgraded shares of Vestis from a "market perform" rating to an "outperform" rating in a report on Tuesday, May 12th. Barclays boosted their price objective 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 increased 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. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus target price of $12.66.

Vestis Stock Up 4.4%

The company has a quick ratio of 1.75, a current ratio of 2.17 and a debt-to-equity ratio of 1.38. The company has a market capitalization of $1.73 billion, a price-to-earnings ratio of -262.45 and a beta of 0.95. The stock's fifty day moving average price is $14.14 and its 200-day moving average price is $11.37.

Vestis (NYSE:VSTS - Get Free Report) last announced its earnings results on Tuesday, August 11th. The company reported $0.18 EPS for the quarter, topping the consensus estimate of $0.10 by $0.08. The business had revenue of $661.66 million during the quarter, compared to analysts' expectations of $668.94 million. Vestis had a negative net margin of 0.20% and a positive return on equity of 7.27%. On average, sell-side analysts predict that Vestis Corporation will post 0.62 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Vestis

A number of large investors have recently modified their holdings of VSTS. State of Wyoming increased its position in shares of Vestis by 10.4% in the fourth quarter. State of Wyoming now owns 15,145 shares of the company's stock valued at $101,000 after acquiring an additional 1,428 shares during the last quarter. Quantinno Capital Management LP boosted its position in Vestis by 2.1% during the first quarter. Quantinno Capital Management LP now owns 86,042 shares of the company's stock valued at $676,000 after purchasing an additional 1,756 shares during the last quarter. HB Wealth Management LLC grew its stake in Vestis by 16.2% in the second quarter. HB Wealth Management LLC now owns 15,270 shares of the company's stock valued at $222,000 after purchasing an additional 2,132 shares in the last quarter. Captrust Financial Advisors grew its stake in Vestis by 15.6% in the second quarter. Captrust Financial Advisors now owns 20,599 shares of the company's stock valued at $118,000 after purchasing an additional 2,787 shares in the last quarter. Finally, Philadelphia Investment Partners LLC bought a new position in Vestis in the second quarter valued at approximately $47,000. 97.40% of the stock is currently owned by institutional investors and hedge funds.

Vestis Company Profile

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. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries.

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