Vestis (NYSE:VSTS) Shares Down 6.7% - Here's Why

Key Points

• Vestis shares fell by 6.7% on Monday, trading at $4.26, significantly lower than its previous close of $4.56, with a trading volume decrease of 65% compared to its average.
• Analysts have mixed views on Vestis, with JPMorgan Chase reducing its price target from $6.00 to $5.50, while others have upgraded the stock to a "hold" rating, averaging a target price of $9.13.
• Institutional investors hold a substantial majority of Vestis stock, with 97.40% ownership from hedge funds and investment firms, indicating strong institutional interest in the company.

Shares of Vestis Corporation (NYSE:VSTS - Get Free Report) dropped 6.7% during trading on Monday . The stock traded as low as $4.22 and last traded at $4.26. Approximately 810,464 shares changed hands during trading, a decline of 65% from the average daily volume of 2,310,377 shares. The stock had previously closed at $4.56.

Analyst Ratings Changes

Several equities analysts have recently weighed in on VSTS shares. JPMorgan Chase & Co. lowered their price objective on shares of Vestis from $6.00 to $5.50 and set an "underweight" rating on the stock in a research note on Thursday, August 7th. Wall Street Zen raised shares of Vestis from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Two investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $9.13.

Vestis Stock Performance

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 stock has a market cap of $563.62 million, a price-to-earnings ratio of -18.59 and a beta of 0.98. The stock's 50-day moving average is $5.46 and its 200-day moving average is $7.26.

Vestis (NYSE:VSTS - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.05 earnings per share for the quarter, meeting analysts' consensus estimates of $0.05. The business had revenue of $673.80 million for the quarter, compared to analysts' expectations of $673.65 million. Vestis had a negative net margin of 1.11% and a positive return on equity of 3.76%. The company's revenue was down 3.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.16 earnings per share. On average, analysts expect that Vestis Corporation will post 0.7 EPS for the current year.

Hedge Funds Weigh In On Vestis

A number of institutional investors have recently modified their holdings of VSTS. Alberta Investment Management Corp raised its stake in Vestis by 57.7% during the 2nd quarter. Alberta Investment Management Corp now owns 9,692,000 shares of the company's stock valued at $55,535,000 after buying an additional 3,547,000 shares during the last quarter. AQR Capital Management LLC increased its position in shares of Vestis by 19.8% during the second quarter. AQR Capital Management LLC now owns 5,593,129 shares of the company's stock worth $32,049,000 after acquiring an additional 923,459 shares during the period. Vision One Management Partners LP increased its holdings in Vestis by 8.5% during the second quarter. Vision One Management Partners LP now owns 3,590,017 shares of the company's stock valued at $20,571,000 after buying an additional 281,000 shares during the period. Millennium Management LLC lifted its stake in shares of 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 buying an additional 1,928,687 shares during the period. Finally, Scopia Capital Management LP lifted its position in Vestis by 16.1% during the second quarter. Scopia Capital Management LP now owns 2,896,583 shares of the company's stock valued at $16,597,000 after purchasing an additional 401,223 shares during the period. Institutional investors and hedge funds own 97.40% of the company's stock.

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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