VSE (NASDAQ:VSEC) Reaches New 1-Year Low - What's Next?

Key Points

• VSE shares hit a new 52-week low, trading as low as $151.40 and last changing hands at $156.52, well below their 50-day and 200-day moving averages.
• Despite the stock’s decline, analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $258.12; recent quarterly results also exceeded earnings and revenue estimates.
• VSE declared a quarterly dividend of $0.10 per share, equivalent to a $0.40 annualized payout and a 0.3% yield, while institutional investors hold 91.54% of the company.

VSE Corporation (NASDAQ:VSEC - Get Free Report)'s share price hit a new 52-week low during trading on Wednesday. The company traded as low as $151.40 and last traded at $156.52, with a volume of 533,741 shares changing hands. The stock had previously closed at $158.08.

Wall Street Analysts Forecast Growth

VSEC has been the topic of a number of research reports. Deutsche Bank Aktiengesellschaft upped their target price on VSE from $280.00 to $290.00 and gave the stock a "buy" rating in a research report on Tuesday, August 11th. Stifel Nicolaus lifted their price target on shares of VSE from $245.00 to $260.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Zacks Research raised shares of VSE from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 5th. Citigroup reissued a "buy" rating on shares of VSE in a research report on Wednesday, October 7th. Finally, B. Riley Financial restated a "buy" rating on shares of VSE in a report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $258.12.

VSE Stock Performance

The firm has a market cap of $4.39 billion, a PE ratio of 50.17, a PEG ratio of 0.65 and a beta of 1.27. The company has a quick ratio of 1.30, a current ratio of 3.77 and a debt-to-equity ratio of 0.31. The company has a 50-day simple moving average of $191.58 and a two-hundred day simple moving average of $196.04.

VSE (NASDAQ:VSEC - Get Free Report) last announced its earnings results on Wednesday, August 5th. The construction company reported $1.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.82. The firm had revenue of $449.14 million during the quarter, compared to analyst estimates of $425.03 million. VSE had a return on equity of 6.71% and a net margin of 6.17%. The business's revenue was up 65.0% compared to the same quarter last year. During the same period last year, the firm posted $0.97 EPS. As a group, equities research analysts forecast that VSE Corporation will post 6.75 earnings per share for the current year.

VSE Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 29th. Investors of record on Thursday, October 15th will be given a dividend of $0.10 per share. The ex-dividend date is Thursday, October 15th. This represents a $0.40 annualized dividend and a yield of 0.3%. VSE's dividend payout ratio is presently 12.82%.

Insiders Place Their Bets

In related news, CEO John Cuomo sold 17,500 shares of the firm's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $242.49, for a total transaction of $4,243,575.00. Following the completion of the sale, the chief executive officer owned 169,537 shares in the company, valued at approximately $41,111,027.13. This trade represents a 9.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 1.80% of the company's stock.

Institutional Trading of VSE

Several hedge funds have recently added to or reduced their stakes in the stock. WINTON GROUP Ltd bought a new stake in shares of VSE in the 2nd quarter worth approximately $2,545,000. Jupiter Topco LLC purchased a new position in VSE in the second quarter valued at approximately $2,783,000. Wellington Management Group LLP bought a new position in VSE during the second quarter valued at $13,164,000. Susquehanna Fundamental Investments LLC grew its holdings in VSE by 956.5% during the second quarter. Susquehanna Fundamental Investments LLC now owns 37,536 shares of the construction company's stock valued at $8,577,000 after purchasing an additional 33,983 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in VSE during the second quarter valued at $754,000. Institutional investors own 91.54% of the company's stock.

VSE Company Profile

VSE Corporation is a diversified provider of aftermarket distribution, maintenance, repair, overhaul, engineering, logistics and other sustainment services for government and commercial customers. The company supports complex assets and supply chains, with activities spanning aviation, defense, transportation and fleet markets.

Through its aviation businesses, VSE distributes aircraft parts and provides maintenance, repair and overhaul services for commercial, general aviation, business and government aircraft.

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