Vestis (NYSE:VSTS) Stock Price Up 0.9% - Still a Buy?

Key Points

• Vestis shares rose 0.9% to about $14.13 in Friday trading, while volume was roughly 49% below the average session level.
• Wall Street sentiment remains cautious: analysts’ consensus rating is “Reduce”, with one Buy, three Hold and four Sell ratings and an average price target of $12.66.
• The company beat quarterly earnings expectations, reporting $0.18 per share versus the $0.10 consensus estimate, although revenue of $661.66 million fell short of forecasts. CEO James Barber also bought 84,500 shares, increasing his stake by 10.8%.

Vestis Corporation (NYSE:VSTS - Get Free Report)'s share price shot up 0.9% on Friday. The stock traded as high as $14.16 and last traded at $14.1290. 849,982 shares changed hands during mid-day trading, a decline of 49% from the average session volume of 1,664,786 shares. The stock had previously closed at $14.00.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on VSTS. Weiss Ratings restated a "sell (d-)" rating on shares of Vestis in a report on Friday, August 7th. The Goldman Sachs Group increased their target price on Vestis from $8.20 to $9.30 and gave the stock a "sell" rating in a research note on Tuesday, August 11th. JPMorgan Chase & Co. lifted their price target on Vestis from $11.00 to $13.00 and gave the stock an "underweight" rating in a report on Thursday, August 13th. Zacks Research downgraded Vestis from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 10th. Finally, Barclays upped their price objective on Vestis from $9.00 to $11.00 and gave the company an "underweight" rating in a report on Wednesday, August 12th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus price target of $12.66.

Vestis Trading Up 0.9%

The firm's 50-day moving average is $13.45 and its 200 day moving average is $12.44. The company has a current ratio of 2.17, a quick ratio of 1.75 and a debt-to-equity ratio of 1.38. The firm has a market capitalization of $1.87 billion, a price-to-earnings ratio of -282.52 and a beta of 0.90.

Vestis (NYSE:VSTS - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $0.18 earnings per share for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $668.94 million. On average, equities analysts predict that Vestis Corporation will post 0.62 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO James Barber acquired 84,500 shares of the stock in a transaction dated Wednesday, September 2nd. The stock was purchased at an average cost of $12.37 per share, with a total value of $1,045,265.00. Following the completion of the purchase, the chief executive officer directly owned 867,222 shares in the company, valued at $10,727,536.14. This trade represents a 10.80% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 15.70% of the company's stock.

Hedge Funds Weigh In On Vestis

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. WINTON GROUP Ltd grew its position in Vestis by 7.8% during the second quarter. WINTON GROUP Ltd now owns 100,064 shares of the company's stock worth $1,453,000 after buying an additional 7,231 shares in the last quarter. Engineers Gate Manager LP purchased a new stake in Vestis during the second quarter valued at about $503,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Vestis during the second quarter valued at about $453,000. HB Wealth Management LLC lifted its stake in Vestis by 16.2% during the second quarter. HB Wealth Management LLC now owns 15,270 shares of the company's stock worth $222,000 after purchasing an additional 2,132 shares during the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new position in shares of Vestis in the 2nd quarter worth about $145,000. Institutional investors own 97.40% of the company's stock.

Vestis Company Profile

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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