Vestis (NYSE:VSTS) Sets New 52-Week Low - Here's What Happened

Key Points

• Vestis Corporation (NYSE: VSTS) reached a new 52-week low at $5.14, with significant trading volume of over 1.6 million shares, following a previous close of $5.64.
• Analysts have issued an underweight rating, with Barclays lowering its target price from $10.00 to $5.00, while JPMorgan Chase adjusted its target from $5.00 to $6.00.
• Insider transactions indicate confidence in the company, as Director Keith A. Meister bought over 314,000 shares, raising his ownership stake and highlighting ongoing insider buying.

Vestis Corporation (NYSE:VSTS - Get Free Report) hit a new 52-week low on Thursday . The company traded as low as $5.20 and last traded at $5.14, with a volume of 1651227 shares changing hands. The stock had previously closed at $5.64.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Barclays reduced their target price on shares of Vestis from $10.00 to $5.00 and set an "underweight" rating on the stock in a report on Friday, May 9th. JPMorgan Chase & Co. reaffirmed an "underweight" rating and set a $6.00 price target (up previously from $5.00) on shares of Vestis in a research report on Monday, July 14th. Two investment analysts have rated the stock with a sell rating and three have assigned a hold rating to the stock. Based on data from MarketBeat.com, Vestis presently has a consensus rating of "Hold" and a consensus target price of $9.25.

Vestis Price Performance

The company has a current ratio of 1.87, a quick ratio of 1.41 and a debt-to-equity ratio of 1.46. The company has a market cap of $683.28 million, a PE ratio of -22.54 and a beta of 0.96. The firm has a 50 day moving average of $6.10 and a two-hundred day moving average of $8.87.

Vestis (NYSE:VSTS - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $0.05 EPS for the quarter, meeting the consensus estimate of $0.05. Vestis had a positive return on equity of 3.75% and a negative net margin of 1.11%. The business had revenue of $673.80 million for the quarter, compared to the consensus estimate of $673.65 million. During the same period last year, the business posted $0.16 EPS. The company's revenue was down 3.5% compared to the same quarter last year. Research analysts predict that Vestis Corporation will post 0.7 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Keith A. Meister purchased 314,390 shares of the company's stock in a transaction dated Wednesday, May 28th. The shares were purchased at an average cost of $6.03 per share, for a total transaction of $1,895,771.70. Following the purchase, the director directly owned 18,803,899 shares in the company, valued at approximately $113,387,510.97. This represents a 1.70% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In the last quarter, insiders acquired 800,675 shares of company stock worth $4,777,432. Company insiders own 13.60% of the company's stock.

Hedge Funds Weigh In On Vestis

Institutional investors and hedge funds have recently modified their holdings of the company. Gamco Investors INC. ET AL raised its holdings in Vestis by 2.0% in the 4th quarter. Gamco Investors INC. ET AL now owns 45,350 shares of the company's stock worth $691,000 after purchasing an additional 875 shares during the period. Copeland Capital Management LLC grew its position in shares of Vestis by 33.0% during the first quarter. Copeland Capital Management LLC now owns 5,428 shares of the company's stock valued at $54,000 after purchasing an additional 1,346 shares in the last quarter. Bank of Montreal Can grew its position in shares of Vestis by 11.1% during the fourth quarter. Bank of Montreal Can now owns 15,315 shares of the company's stock valued at $233,000 after purchasing an additional 1,534 shares in the last quarter. Landscape Capital Management L.L.C. grew its position in shares of Vestis by 10.5% during the first quarter. Landscape Capital Management L.L.C. now owns 18,447 shares of the company's stock valued at $183,000 after purchasing an additional 1,753 shares in the last quarter. Finally, True Wealth Design LLC purchased a new position in Vestis in the fourth quarter worth about $29,000. 97.40% of the stock is currently 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.

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