Vestis (NYSE:VSTS) Reaches New 1-Year Low - What's Next?

Key Points

• Vestis Corporation (NYSE:VSTS) hit a new 52-week low of $4.32 during trading, significantly down from its previous close of $4.44, with over 2.7 million shares exchanged.
• Analysts have downgraded their price targets for Vestis, with Barclays setting a new target of $5.00 and JPMorgan lowering it to $5.50, reflecting a generally negative outlook.
• Insider trading showed confidence in the company, with Director Keith A. Meister purchasing 377,277 shares, increasing his ownership stake to over 18 million shares valued at around $108 million.

Vestis Corporation (NYSE:VSTS - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday . The company traded as low as $4.32 and last traded at $4.37, with a volume of 2759209 shares. The stock had previously closed at $4.44.

Wall Street Analyst Weigh In

A number of research firms recently commented on VSTS. Barclays lowered their price target on shares of Vestis from $10.00 to $5.00 and set an "underweight" rating on the stock in a research report on Friday, May 9th. Wall Street Zen raised shares of Vestis from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Vestis from $6.00 to $5.50 and set an "underweight" rating on the stock in a report on Thursday, August 7th. Two equities research analysts have rated the stock with a sell rating and three have given a hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $9.13.

Vestis Trading Up 1.5%

The business's 50 day moving average price is $5.87 and its two-hundred day moving average price is $8.26. 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 company has a market capitalization of $617.01 million, a price-to-earnings ratio of -20.35 and a beta of 0.96.

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, meeting 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 company 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 company posted $0.16 EPS. The firm's quarterly revenue was down 3.5% compared to the same quarter last year. On average, equities analysts predict that Vestis Corporation will post 0.7 earnings per share for the current fiscal year.

Insider Buying and Selling at Vestis

In related news, Director Keith A. Meister purchased 314,390 shares of Vestis stock in a transaction dated Wednesday, May 28th. The shares were bought at an average cost of $6.03 per share, for a total transaction of $1,895,771.70. Following the purchase, the director owned 18,803,899 shares in the company, valued at approximately $113,387,510.97. This trade represents a 1.70% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In the last 90 days, insiders have purchased 800,675 shares of company stock valued at $4,777,432. Company insiders own 13.60% of the company's stock.

Institutional Investors Weigh In On Vestis

Several hedge funds have recently added to or reduced their stakes in VSTS. Alberta Investment Management Corp boosted its position in Vestis by 57.7% during the 2nd quarter. Alberta Investment Management Corp now owns 9,692,000 shares of the company's stock worth $55,535,000 after buying an additional 3,547,000 shares during the period. Millennium Management LLC lifted its position in shares of Vestis by 179.4% in the 4th quarter. Millennium Management LLC now owns 3,003,762 shares of the company's stock worth $45,777,000 after purchasing an additional 1,928,687 shares during the period. Royce & Associates LP lifted its position in shares of Vestis by 196.2% in the 1st quarter. Royce & Associates LP now owns 2,842,936 shares of the company's stock worth $28,145,000 after purchasing an additional 1,883,106 shares during the period. Jane Street Group LLC lifted its position in shares of Vestis by 700.5% in the 1st quarter. Jane Street Group LLC now owns 1,982,027 shares of the company's stock worth $19,622,000 after purchasing an additional 1,734,442 shares during the period. Finally, Alyeska Investment Group L.P. acquired a new position in shares of Vestis in the 4th quarter worth approximately $25,805,000. 97.40% of the stock is currently owned by institutional investors and hedge funds.

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.