Vestis (NYSE:VSTS) Sets New 12-Month Low - Here's Why

Key Points

• Vestis Corporation shares hit a new 52-week low, trading as low as $4.20 and closing at $4.28, with a significant trading volume of over 2 million shares.
• Equities analysts have mixed opinions on the stock, with JPMorgan reducing its target price from $6.00 to $5.50 and Wall Street Zen upgrading it from "sell" to "hold," resulting in a consensus rating of "Reduce."
• The company's quarterly earnings met estimates at $0.05 EPS, but revenue declined by 3.5% year-over-year, indicating potential challenges ahead.

Vestis Corporation (NYSE:VSTS - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $4.20 and last traded at $4.28, with a volume of 2145940 shares. The stock had previously closed at $4.56.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on VSTS shares. JPMorgan Chase & Co. lowered their price target on shares of Vestis from $6.00 to $5.50 and set an "underweight" rating on the stock in a report on Thursday, August 7th. Wall Street Zen raised shares of Vestis from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Two equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $9.13.

Vestis Trading Down 3.4%

The company has a debt-to-equity ratio of 1.45, a current ratio of 1.84 and a quick ratio of 1.42. The firm has a market capitalization of $555.05 million, a PE ratio of -18.30 and a beta of 0.97. The company's fifty day simple moving average is $5.32 and its 200-day simple moving average is $7.09.

Vestis (NYSE:VSTS - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.05 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.05. The business had revenue of $673.80 million for the quarter, compared to the consensus estimate of $673.65 million. Vestis had a negative net margin of 1.11% and a positive return on equity of 3.76%. The company's revenue was down 3.5% compared to the same quarter last year. During the same period last year, the firm posted $0.16 earnings per share. As a group, sell-side analysts expect that Vestis Corporation will post 0.7 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Vestis

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Alberta Investment Management Corp lifted its stake in shares of Vestis by 57.7% in the second quarter. Alberta Investment Management Corp now owns 9,692,000 shares of the company's stock worth $55,535,000 after buying an additional 3,547,000 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of Vestis by 19.8% in the second quarter. AQR Capital Management LLC now owns 5,593,129 shares of the company's stock worth $32,049,000 after buying an additional 923,459 shares in the last quarter. Vision One Management Partners LP lifted its stake in shares of Vestis by 8.5% in the second quarter. Vision One Management Partners LP now owns 3,590,017 shares of the company's stock worth $20,571,000 after buying an additional 281,000 shares in the last quarter. Millennium Management LLC lifted its stake in shares of Vestis by 179.4% in the fourth quarter. Millennium Management LLC now owns 3,003,762 shares of the company's stock worth $45,777,000 after buying an additional 1,928,687 shares in the last quarter. Finally, Scopia Capital Management LP lifted its stake in shares of Vestis by 16.1% in the second quarter. Scopia Capital Management LP now owns 2,896,583 shares of the company's stock worth $16,597,000 after buying an additional 401,223 shares in the last quarter. 97.40% of the stock is owned by hedge funds and other institutional investors.

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.