Vestis (NYSE:VSTS) Posts Earnings Results, Hits Expectations

Key Points

• Vestis Corporation reported quarterly earnings of $0.05 per share, meeting analysts' expectations, but has a negative net margin of 0.89% and a positive return on equity of 5.36%.
• Barclays and JPMorgan Chase have recently reduced their price targets for Vestis, indicating a bearish sentiment with Barclays at $5.00 and JPMorgan at $6.00, both maintaining an "underweight" rating.
• Insider trading showed significant activity, with directors purchasing over 384,000 shares combined, implying confidence in the company's future despite its recent stock performance.

Vestis (NYSE:VSTS - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.05 earnings per share for the quarter, hitting the consensus estimate of $0.05, Zacks reports. The firm had revenue of $673.80 million for the quarter, compared to the consensus estimate of $673.65 million. Vestis had a positive return on equity of 3.76% and a negative net margin of 1.11%. The company's revenue for the quarter was down 3.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.16 earnings per share.

Vestis Trading Down 7.0%

VSTS traded down $0.37 during trading on Friday, hitting $4.83. 3,352,926 shares of the stock were exchanged, compared to its average volume of 1,874,580. The company has a debt-to-equity ratio of 1.45, a quick ratio of 1.41 and a current ratio of 1.84. The firm has a market cap of $636.13 million, a price-to-earnings ratio of -20.98 and a beta of 0.96. The firm has a 50 day simple moving average of $6.05 and a 200 day simple moving average of $8.66. Vestis has a 1 year low of $4.81 and a 1 year high of $17.83.

Insider Transactions at Vestis

In related news, Director Keith A. Meister bought 314,390 shares of the company's stock in a transaction on Wednesday, May 28th. The shares were acquired at an average price of $6.03 per share, with a total value of $1,895,771.70. Following the transaction, the director owned 18,803,899 shares of the company's stock, valued at $113,387,510.97. The trade was a 1.70% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Over the last quarter, insiders acquired 800,675 shares of company stock worth $4,777,432. 13.60% of the stock is currently owned by company insiders.

Institutional Trading of Vestis

Several hedge funds and other institutional investors have recently bought and sold shares of VSTS. Acadian Asset Management LLC bought a new stake in Vestis during the 1st quarter valued at $762,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Vestis by 10.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 355,493 shares of the company's stock valued at $3,519,000 after acquiring an additional 34,809 shares in the last quarter. Finally, Creative Planning bought a new stake in Vestis during the 2nd quarter valued at $65,000. Institutional investors own 97.40% of the company's stock.

Analyst Ratings Changes

Several research analysts have commented on the company. JPMorgan Chase & Co. reduced their price objective on Vestis from $6.00 to $5.50 and set an "underweight" rating on the stock in a report on Thursday. Wall Street Zen upgraded Vestis from a "sell" rating to a "hold" rating in a report on Saturday. Finally, Barclays reduced their price objective on Vestis from $10.00 to $5.00 and set an "underweight" rating on the stock in a report on Friday, May 9th. Two research analysts have rated the stock with a sell rating and three have assigned a hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $9.13.

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.