Vestis (NYSE:VSTS) Shares Down 7.7% - Time to Sell?

Key Points

• Shares fell 7.7% intraday to about $8.97 (low $9.01) on trading of ~477,694 shares, a 71% decline versus the average session volume of 1.67 million.
• Analysts are overwhelmingly bearish: Vestis has a consensus rating of Strong Sell (four Sell, one Hold) with a consensus price target of $5.88; Weiss, Barclays and Goldman Sachs recently reaffirmed sell/underweight views (Goldman lifted its target to $6.00 but maintained a sell rating).
• Fundamentals are mixed — market cap ~$1.18B, negative PE (-24.13) and net margin (-1.75%) — the company beat EPS estimates ($0.10 vs. $0.06) but revenue missed and fell 3% year-over-year; debt-to-equity is 1.48 and current ratio 2.17.

Vestis Corporation (NYSE:VSTS - Get Free Report)'s share price fell 7.7% on Monday . The company traded as low as $9.01 and last traded at $8.9650. 477,694 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 1,666,521 shares. The stock had previously closed at $9.71.

Analyst Ratings Changes

A number of research firms recently weighed in on VSTS. Weiss Ratings reissued a "sell (d)" rating on shares of Vestis in a research report on Monday, April 20th. Barclays reissued an "underweight" rating on shares of Vestis in a research report on Tuesday, February 17th. Finally, The Goldman Sachs Group increased their price objective on shares of Vestis from $5.30 to $6.00 and gave the stock a "sell" rating in a research report on Wednesday, February 11th. One analyst has rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, Vestis currently has a consensus rating of "Strong Sell" and a consensus price target of $5.88.

Vestis Trading Down 8.1%

The firm has a market capitalization of $1.18 billion, a PE ratio of -24.13 and a beta of 0.85. The stock's 50-day moving average price is $8.30 and its 200 day moving average price is $7.07. The company has a debt-to-equity ratio of 1.48, a current ratio of 2.17 and a quick ratio of 1.74.

Vestis (NYSE:VSTS - Get Free Report) last issued its earnings results on Tuesday, February 10th. The company reported $0.10 EPS for the quarter, topping analysts' consensus estimates of $0.06 by $0.04. The business had revenue of $663.39 million for the quarter, compared to analyst estimates of $665.77 million. Vestis had a negative net margin of 1.75% and a positive return on equity of 2.08%. The company's quarterly revenue was down 3.0% compared to the same quarter last year. During the same period last year, the company posted $0.14 earnings per share. On average, sell-side analysts expect that Vestis Corporation will post 0.43 EPS for the current fiscal year.

Hedge Funds Weigh In On Vestis

Hedge funds and other institutional investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC boosted its stake in shares of Vestis by 471.9% during the second quarter. EverSource Wealth Advisors LLC now owns 5,456 shares of the company's stock valued at $31,000 after purchasing an additional 4,502 shares in the last quarter. Osaic Holdings Inc. boosted its stake in shares of Vestis by 703.2% during the second quarter. Osaic Holdings Inc. now owns 5,743 shares of the company's stock valued at $33,000 after purchasing an additional 5,028 shares in the last quarter. Nisa Investment Advisors LLC boosted its stake in shares of Vestis by 147.3% during the fourth quarter. Nisa Investment Advisors LLC now owns 5,175 shares of the company's stock valued at $35,000 after purchasing an additional 3,082 shares in the last quarter. Farther Finance Advisors LLC boosted its stake in shares of Vestis by 176.1% during the fourth quarter. Farther Finance Advisors LLC now owns 5,193 shares of the company's stock valued at $35,000 after purchasing an additional 3,312 shares in the last quarter. Finally, Eurizon Capital SGR S.p.A. bought a new position in shares of Vestis during the fourth quarter valued at approximately $36,000. 97.40% of the stock is currently owned by 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. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries.

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