Vestis (NYSE:VSTS) Sets New 52-Week Low - Time to Sell?

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.

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

Wall Street Analyst Weigh In

Several equities analysts have issued reports on VSTS shares. Wall Street Zen raised shares of Vestis from a "sell" rating to a "hold" rating in a research note on Saturday, August 9th. JPMorgan Chase & Co. dropped their price objective on shares of Vestis from $6.00 to $5.50 and set an "underweight" rating on the stock in a research note on Thursday, August 7th. Two investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Vestis has a consensus rating of "Reduce" and a consensus price target of $9.13.

Vestis Stock Performance

The company has a current ratio of 1.84, a quick ratio of 1.42 and a debt-to-equity ratio of 1.45. The firm has a market capitalization of $555.05 million, a price-to-earnings ratio of -18.30 and a beta of 0.98. The stock's 50 day moving average price is $5.28 and its two-hundred day moving average price is $6.96.

Vestis (NYSE:VSTS - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $0.05 earnings per share for the quarter, hitting analysts' consensus estimates of $0.05. Vestis had a negative net margin of 1.11% and a positive return on equity of 3.76%. The business had revenue of $673.80 million for the quarter, compared to analysts' expectations of $673.65 million. During the same period in the prior year, the company posted $0.16 EPS. The business's revenue for the quarter was down 3.5% on a year-over-year basis. On average, analysts forecast that Vestis Corporation will post 0.7 EPS for the current year.

Hedge Funds Weigh In On Vestis

Institutional investors and hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC grew its stake in shares of Vestis by 471.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,456 shares of the company's stock worth $31,000 after purchasing an additional 4,502 shares during the period. Osaic Holdings Inc. grew its stake in Vestis by 703.2% in the 2nd quarter. Osaic Holdings Inc. now owns 5,743 shares of the company's stock valued at $33,000 after acquiring an additional 5,028 shares during the last quarter. Spire Wealth Management grew its stake in Vestis by 168.2% in the 1st quarter. Spire Wealth Management now owns 5,110 shares of the company's stock valued at $51,000 after acquiring an additional 3,205 shares during the last quarter. Copeland Capital Management LLC grew its stake in Vestis by 33.0% in the 1st quarter. Copeland Capital Management LLC now owns 5,428 shares of the company's stock valued at $54,000 after acquiring an additional 1,346 shares during the last quarter. Finally, PNC Financial Services Group Inc. grew its stake in Vestis by 331.4% in the 2nd quarter. PNC Financial Services Group Inc. now owns 9,427 shares of the company's stock valued at $54,000 after acquiring an additional 7,242 shares during the last quarter. 97.40% of the stock is owned by institutional investors and hedge funds.

About Vestis

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.