Varex Imaging (NASDAQ:VREX) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Varex Imaging from a buy to a hold rating, adding to a mixed analyst picture that currently averages to a “Moderate Buy” with a $16.17 price target.
• The stock fell sharply, with shares down 16.9% to $9.83, well below both its 50-day and 200-day moving averages.
• Recent earnings and outlook disappointed: Q2 revenue and EPS slightly missed estimates, and the company’s Q3 guidance also came in below expectations, despite management saying demand remains solid.

Varex Imaging (NASDAQ:VREX - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

Several other equities research analysts have also recently weighed in on VREX. B. Riley Financial reissued a "buy" rating on shares of Varex Imaging in a research note on Thursday, February 12th. Weiss Ratings reissued a "sell (d-)" rating on shares of Varex Imaging in a research note on Friday, March 27th. Jefferies Financial Group restated a "hold" rating and set a $14.50 price target on shares of Varex Imaging in a report on Monday, February 2nd. Finally, Zacks Research upgraded Varex Imaging from a "hold" rating to a "strong-buy" rating in a report on Monday, April 13th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $16.17.

Varex Imaging Trading Down 16.9%

Shares of VREX stock opened at $9.83 on Friday. The stock has a market cap of $411.88 million, a price-to-earnings ratio of -4.92 and a beta of 0.96. The stock has a 50-day moving average of $11.55 and a 200-day moving average of $12.17. The company has a current ratio of 3.89, a quick ratio of 1.87 and a debt-to-equity ratio of 0.75. Varex Imaging has a 1-year low of $6.76 and a 1-year high of $14.56.

Varex Imaging (NASDAQ:VREX - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.21 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.01). The company had revenue of $216.00 million during the quarter, compared to analyst estimates of $216.92 million. Varex Imaging had a negative net margin of 9.64% and a positive return on equity of 8.21%. Varex Imaging has set its Q3 2026 guidance at 0.150-0.300 EPS. On average, equities research analysts forecast that Varex Imaging will post 0.93 earnings per share for the current year.

Insider Buying and Selling

In other Varex Imaging news, Director Jay K. Kunkel sold 4,510 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $11.14, for a total value of $50,241.40. Following the completion of the sale, the director owned 23,450 shares of the company's stock, valued at approximately $261,233. This trade represents a 16.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 4.60% of the company's stock.

Institutional Investors Weigh In On Varex Imaging

A number of hedge funds have recently added to or reduced their stakes in the company. Fifth Third Bancorp grew its stake in Varex Imaging by 10,311.2% in the first quarter. Fifth Third Bancorp now owns 18,532 shares of the company's stock valued at $197,000 after acquiring an additional 18,354 shares during the period. Y Intercept Hong Kong Ltd grew its stake in Varex Imaging by 206.6% in the first quarter. Y Intercept Hong Kong Ltd now owns 38,020 shares of the company's stock valued at $403,000 after acquiring an additional 25,618 shares during the period. Inspire Investing LLC grew its stake in Varex Imaging by 21.2% in the first quarter. Inspire Investing LLC now owns 48,594 shares of the company's stock valued at $516,000 after acquiring an additional 8,484 shares during the period. SG Americas Securities LLC grew its stake in Varex Imaging by 4.4% in the first quarter. SG Americas Securities LLC now owns 30,202 shares of the company's stock valued at $320,000 after acquiring an additional 1,272 shares during the period. Finally, Diversified Trust Co acquired a new stake in Varex Imaging in the first quarter valued at approximately $134,000.

Key Varex Imaging News

Here are the key news stories impacting Varex Imaging this week:

• Neutral Sentiment: Varex reported Q2 revenue of $216 million and adjusted EPS of $0.21, both just below consensus, while the company said demand remained solid and margins held relatively steady. Varex Announces Financial Results for Second Quarter Fiscal Year 2026
• Neutral Sentiment: The company’s GAAP results were weaker, with a net loss of $0.19 per diluted share and $2 million in cash outflows from operations, which may keep some pressure on the stock despite stable gross margins. Varex Announces Financial Results for Second Quarter Fiscal Year 2026
• Negative Sentiment: Varex’s Q3 fiscal 2026 guidance called for EPS of $0.15 to $0.30 versus analysts’ $0.22 estimate, and revenue guidance of $210 million to $225 million versus about $215.5 million expected, signaling only modest upside and likely disappointing investors looking for a stronger outlook. Varex Announces Financial Results for Second Quarter Fiscal Year 2026
• Negative Sentiment: Coverage from earnings transcript and analysis pieces on Yahoo Finance, Seeking Alpha, and Zacks all centered on the earnings and revenue miss, reinforcing the market’s negative reaction to the quarterly update. Varex Imaging (VREX) Q2 2026 Earnings Transcript

About Varex Imaging

Varex Imaging Corporation is a global provider of X-ray imaging components and solutions for the medical, security and industrial markets. The company designs, develops and manufactures a broad range of products that convert X-ray energy into high-resolution digital images. Its portfolio includes X-ray tubes, flat panel detectors, digital sensors, specialty radiographic tubes and related software, all engineered to meet the demanding requirements of original equipment manufacturers (OEMs) in diagnostic imaging, computed tomography (CT), fluoroscopy, mammography, dental radiography and non-destructive testing applications.

The company's medical imaging offerings support a wide spectrum of clinical modalities, from portable radiography systems to advanced CT scanners, enhancing image quality and dose efficiency for healthcare providers.

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