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

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) hit a new 52-week low during trading on Wednesday . The stock traded as low as $4.32 and last traded at $4.37, with a volume of 2759209 shares trading hands. The stock had previously closed at $4.44.

Analysts Set New Price Targets

Several analysts have commented on VSTS shares. Wall Street Zen upgraded shares of Vestis from a "sell" rating to a "hold" rating in a research note on Saturday. 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 research note on Friday, May 9th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Vestis from $6.00 to $5.50 and set an "underweight" rating for the company in a research note on Thursday, August 7th. Two research analysts have rated the stock with a sell rating and three have issued a hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $9.13.

Vestis Price Performance

The firm has a market cap of $575.48 million, a PE ratio of -18.98 and a beta of 0.96. The stock's fifty day moving average price is $5.97 and its 200-day moving average price is $8.50. The company has a debt-to-equity ratio of 1.45, a current ratio of 1.84 and a quick ratio of 1.42.

Vestis (NYSE:VSTS - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $0.05 earnings per share (EPS) for the quarter, hitting 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 business had revenue of $673.80 million during the quarter, compared to analyst estimates of $673.65 million. During the same quarter in the prior year, the firm earned $0.16 earnings per share. The company's revenue for the quarter was down 3.5% compared to the same quarter last year. As a group, equities analysts expect that Vestis Corporation will post 0.7 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Keith A. Meister bought 377,277 shares of the firm's stock in a transaction on Friday, May 23rd. The shares were bought at an average cost of $5.89 per share, for a total transaction of $2,222,161.53. Following the acquisition, the director directly owned 18,380,501 shares of the company's stock, valued at $108,261,150.89. This trade represents a 2.10% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. In the last quarter, insiders have bought 800,675 shares of company stock valued at $4,777,432. Insiders own 13.60% of the company's stock.

Hedge Funds Weigh In On Vestis

Several institutional investors and hedge funds have recently bought and sold shares of VSTS. Alberta Investment Management Corp boosted its stake in shares of Vestis by 57.7% in the second quarter. Alberta Investment Management Corp now owns 9,692,000 shares of the company's stock valued at $55,535,000 after purchasing an additional 3,547,000 shares during the period. Millennium Management LLC raised its holdings in Vestis by 179.4% during the fourth 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 in the last quarter. Royce & Associates LP raised its holdings in Vestis by 196.2% during the first 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 in the last quarter. Jane Street Group LLC raised its holdings in Vestis by 700.5% during the first 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 in the last quarter. Finally, Alyeska Investment Group L.P. acquired a new stake in Vestis during the fourth 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.