Vestis (NYSE:VSTS) Posts Earnings Results

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) released its quarterly earnings results on Tuesday. The company reported $0.05 earnings per share for the quarter, meeting the consensus estimate of $0.05, Zacks reports. Vestis had a positive return on equity of 3.75% and a negative net margin of 1.11%. The firm 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 firm earned $0.16 EPS. The company's revenue was down 3.5% compared to the same quarter last year.

Vestis Stock Down 7.0%

NYSE:VSTS traded down $0.40 during trading hours on Thursday, hitting $5.25. The company's stock had a trading volume of 1,422,121 shares, compared to its average volume of 2,348,815. The stock has a fifty day moving average of $6.10 and a 200-day moving average of $8.87. The stock has a market capitalization of $691.19 million, a P/E ratio of -22.85 and a beta of 0.96. Vestis has a 52-week low of $5.20 and a 52-week high of $17.83. The company has a current ratio of 1.87, a quick ratio of 1.41 and a debt-to-equity ratio of 1.46.

Analysts Set New Price Targets

Several analysts recently issued reports on VSTS shares. JPMorgan Chase & Co. reaffirmed an "underweight" rating and set a $6.00 price objective (up previously from $5.00) on shares of Vestis in a research note on Monday, July 14th. Barclays decreased their target price on shares of Vestis from $10.00 to $5.00 and set an "underweight" rating for the company in a report on Friday, May 9th. Two analysts have rated the stock with a sell rating and three have assigned a hold rating to the stock. According to MarketBeat, Vestis has an average rating of "Hold" and an average target price of $9.25.

Insider Buying and Selling

In other news, Director Keith A. Meister bought 314,390 shares of the stock in a transaction on Wednesday, May 28th. The stock was purchased at an average cost of $6.03 per share, with a total value of $1,895,771.70. Following the purchase, the director owned 18,803,899 shares of the company's stock, valued at approximately $113,387,510.97. The trade was a 1.70% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Insiders have bought a total of 800,675 shares of company stock valued at $4,777,432 in the last three months. 13.60% of the stock is owned by company insiders.

Institutional Trading of Vestis

An institutional investor recently raised its position in Vestis stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Vestis Corporation (NYSE:VSTS - Free Report) by 10.9% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 355,493 shares of the company's stock after buying an additional 34,809 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC owned approximately 0.27% of Vestis worth $3,519,000 as of its most recent filing with the Securities and Exchange Commission (SEC). 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.