Vestis (NYSE:VSTS) Reaches New 52-Week High - Here's What Happened

Key Points

• Vestis shares hit a new 52-week high on Wednesday, trading as high as $15.28 before last changing hands near $15.30, up about 3.7% on the day.
• Despite the stock's recent run-up, Wall Street sentiment remains cautious: the consensus rating is “Reduce” with an average price target of $9.50, although some analysts recently raised targets or upgraded the stock.
• Vestis reported better-than-expected quarterly earnings in May, posting $0.16 EPS versus estimates of $0.09 and revenue of $659.44 million, while institutional investors continue to hold the vast majority of shares.

Vestis Corporation (NYSE:VSTS - Get Free Report)'s share price hit a new 52-week high on Wednesday . The company traded as high as $15.28 and last traded at $15.2990, with a volume of 26632 shares changing hands. The stock had previously closed at $14.74.

Analysts Set New Price Targets

A number of brokerages have commented on VSTS. Barclays increased their price objective on Vestis from $6.00 to $9.00 and gave the company an "underweight" rating in a research report on Friday, May 15th. Weiss Ratings downgraded Vestis from a "sell (d)" rating to a "sell (d-)" rating in a research report on Wednesday, May 13th. Stifel Nicolaus upped their price target on Vestis from $8.50 to $11.00 and gave the company a "hold" rating in a research note on Wednesday, May 13th. Zacks Research upgraded Vestis from a "hold" rating to a "strong-buy" rating in a report on Friday, July 10th. Finally, The Goldman Sachs Group reiterated a "sell" rating and issued a $7.50 price objective on shares of Vestis in a research report on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus target price of $9.50.

Vestis Trading Up 3.7%

The business's 50 day simple moving average is $12.81 and its 200-day simple moving average is $9.50. The company has a debt-to-equity ratio of 1.44, a current ratio of 2.13 and a quick ratio of 1.69. The stock has a market capitalization of $2.04 billion, a P/E ratio of -110.16 and a beta of 0.98.

Vestis (NYSE:VSTS - Get Free Report) last issued its earnings results on Tuesday, May 12th. The company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.09 by $0.07. Vestis had a negative net margin of 0.63% and a positive return on equity of 5.27%. The company had revenue of $659.44 million during the quarter, compared to analysts' expectations of $655.32 million. During the same quarter in the previous year, the company posted ($0.05) EPS. The business's revenue for the quarter was down .9% compared to the same quarter last year. As a group, analysts forecast that Vestis Corporation will post 0.52 EPS for the current year.

Hedge Funds Weigh In On Vestis

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in VSTS. SG Americas Securities LLC boosted its holdings in shares of Vestis by 1,506.6% in the fourth quarter. SG Americas Securities LLC now owns 295,000 shares of the company's stock valued at $1,968,000 after buying an additional 276,638 shares during the period. Pacific Point Advisors LLC raised its holdings in shares of Vestis by 603.8% during the fourth quarter. Pacific Point Advisors LLC now owns 214,686 shares of the company's stock worth $1,432,000 after acquiring an additional 184,181 shares during the period. QSM Asset Management Ltd raised its holdings in shares of Vestis by 25.0% during the fourth quarter. QSM Asset Management Ltd now owns 380,072 shares of the company's stock worth $2,535,000 after acquiring an additional 76,036 shares during the period. UBS Group AG lifted its position in Vestis by 121.2% in the 4th quarter. UBS Group AG now owns 885,984 shares of the company's stock valued at $5,910,000 after acquiring an additional 485,396 shares in the last quarter. Finally, Vanguard Group Inc. lifted its position in Vestis by 3.6% in the 4th quarter. Vanguard Group Inc. now owns 9,960,651 shares of the company's stock valued at $66,438,000 after acquiring an additional 346,736 shares in the last quarter. Institutional investors own 97.40% of the company's stock.

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. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries.

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