Varex Imaging (NASDAQ:VREX) Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Varex Imaging to a "Strong-Buy", joining Wall Street Zen's recent upgrade, while overall analyst coverage remains mixed with a consensus rating of "Moderate Buy" and a consensus price target of $16.17.
• Varex beat Q4 expectations with $0.19 EPS vs. $0.14 expected and $209.6M revenue, and set Q2 2026 guidance of $0.150–0.250 EPS; the stock trades with a market cap of $491.91M and a negative P/E of -7.16.
• Insider activity included a director selling 4,510 shares, while several institutional investors (notably JPMorgan, Assenagon and Rice Hall James) have materially increased their stakes in recent quarters.

Varex Imaging (NASDAQ:VREX - Get Free Report) was upgraded by stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Monday,Zacks.com reports.

A number of other equities analysts have also recently weighed in on VREX. Jefferies Financial Group reiterated a "hold" rating and set a $14.50 price target on shares of Varex Imaging in a report on Monday, February 2nd. Wall Street Zen raised shares of Varex Imaging from a "buy" rating to a "strong-buy" rating in a research report on Saturday, February 28th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Varex Imaging in a research report on Friday, March 27th. Finally, B. Riley Financial reaffirmed a "buy" rating on shares of Varex Imaging in a research report on Thursday, February 12th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Varex Imaging presently has a consensus rating of "Moderate Buy" and a consensus price target of $16.17.

Varex Imaging Stock Up 2.8%

Shares of NASDAQ:VREX opened at $11.74 on Monday. The company has a quick ratio of 1.87, a current ratio of 3.89 and a debt-to-equity ratio of 0.75. The business has a fifty day moving average of $12.07 and a two-hundred day moving average of $12.14. The stock has a market cap of $491.91 million, a P/E ratio of -7.16 and a beta of 0.99. Varex Imaging has a 52-week low of $6.76 and a 52-week high of $14.56.

Varex Imaging (NASDAQ:VREX - Get Free Report) last posted its quarterly earnings results on Tuesday, February 10th. The company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.05. Varex Imaging had a negative net margin of 7.92% and a positive return on equity of 8.43%. The business had revenue of $209.60 million during the quarter, compared to analysts' expectations of $207.83 million. Varex Imaging has set its Q2 2026 guidance at 0.150-0.250 EPS. On average, research analysts expect that Varex Imaging will post 0.53 earnings per share for the current year.

Insider Activity

In other news, Director Jay K. Kunkel sold 4,510 shares of Varex Imaging stock in a transaction on Friday, March 20th. The shares were sold at an average price of $11.14, for a total transaction of $50,241.40. Following the completion of the sale, the director directly owned 23,450 shares of the company's stock, valued at approximately $261,233. The trade was a 16.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 4.60% of the company's stock.

Institutional Investors Weigh In On Varex Imaging

Institutional investors have recently modified their holdings of the company. JPMorgan Chase & Co. lifted its position in shares of Varex Imaging by 381.8% during the 3rd quarter. JPMorgan Chase & Co. now owns 284,227 shares of the company's stock worth $3,524,000 after purchasing an additional 225,238 shares during the last quarter. Assenagon Asset Management S.A. lifted its stake in Varex Imaging by 166.4% during the third quarter. Assenagon Asset Management S.A. now owns 296,128 shares of the company's stock worth $3,672,000 after purchasing an additional 184,959 shares during the last quarter. Bailard Inc. purchased a new stake in Varex Imaging during the third quarter worth approximately $479,000. Rice Hall James & Associates LLC lifted its stake in Varex Imaging by 20.8% during the third quarter. Rice Hall James & Associates LLC now owns 909,261 shares of the company's stock worth $11,275,000 after purchasing an additional 156,289 shares during the last quarter. Finally, SummerHaven Investment Management LLC purchased a new stake in Varex Imaging during the third quarter worth approximately $1,233,000.

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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