Vestis (NYSE:VSTS) Trading Down 9.9% After Earnings Miss

Key Points

• Vestis Corporation's stock dropped 9.9% after reporting quarterly earnings that missed consensus estimates, with an EPS of ($0.01) compared to an expected $0.05.
• Despite this setback, the company's revenue of $673.80 million slightly exceeded expectations, though it represented a 3.5% decline year-over-year.
• Analysts have mixed ratings on Vestis, with Barclays downgrading its price target to $5.00, while overall consensus remains a "Hold" with a target price of $9.25.

Vestis Corporation (NYSE:VSTS - Get Free Report) shares were down 9.9% during trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $5.48 and last traded at $5.40. Approximately 1,182,847 shares were traded during mid-day trading, a decline of 49% from the average daily volume of 2,334,906 shares. The stock had previously closed at $5.99.

The company reported $0.05 EPS for the quarter, hitting the consensus estimate 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 during the quarter, compared to analysts' expectations of $673.65 million. During the same quarter in the previous year, the business posted $0.16 EPS. The firm's revenue was down 3.5% on a year-over-year basis.

Analyst Ratings Changes

VSTS has been the topic of a number of recent analyst reports. Barclays dropped their target price 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. JPMorgan Chase & Co. decreased their price target on Vestis from $6.00 to $5.50 and set an "underweight" rating for the company in a report on Thursday. Finally, Wall Street Zen upgraded shares of Vestis from a "sell" rating to a "hold" rating in a research report on Saturday. Two equities research analysts have rated the stock with a sell rating and three have assigned a hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $9.13.

Insiders Place Their Bets

In other news, Director Keith A. Meister acquired 377,277 shares of the company's stock in a transaction that occurred on Friday, May 23rd. The stock was purchased at an average cost of $5.89 per share, with a total value of $2,222,161.53. Following the purchase, the director directly owned 18,380,501 shares of the company's stock, valued at approximately $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 through the SEC website. Over the last ninety days, insiders purchased 800,675 shares of company stock valued at $4,777,432. Company insiders own 13.60% of the company's stock.

Hedge Funds Weigh In On Vestis

Hedge funds have recently bought and sold shares of the company. Gamco Investors INC. ET AL increased its holdings in Vestis by 2.0% during the 4th quarter. Gamco Investors INC. ET AL now owns 45,350 shares of the company's stock valued at $691,000 after acquiring an additional 875 shares in the last quarter. Copeland Capital Management LLC boosted its position in shares of Vestis by 33.0% in the first quarter. Copeland Capital Management LLC now owns 5,428 shares of the company's stock worth $54,000 after acquiring an additional 1,346 shares during the last quarter. Bank of Montreal Can boosted its position in shares of Vestis by 11.1% in the fourth quarter. Bank of Montreal Can now owns 15,315 shares of the company's stock worth $233,000 after acquiring an additional 1,534 shares during the last quarter. Landscape Capital Management L.L.C. lifted its position in 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 buying an additional 1,753 shares in the last quarter. Finally, True Wealth Design LLC acquired a new position in Vestis during the fourth quarter valued at approximately $29,000. 97.40% of the stock is owned by hedge funds and other institutional investors.

Vestis Price Performance

The company has a market cap of $636.13 million, a PE ratio of 19.32 and a beta of 0.96. The business's 50 day moving average price is $6.05 and its 200-day moving average price is $8.61. The company has a quick ratio of 1.42, a current ratio of 1.84 and a debt-to-equity ratio of 1.45.

About Vestis

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.