Vestis (NYSE:VSTS) Stock Price 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 mid-day 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 traded hands during 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 ($0.01) EPS for the quarter, missing the consensus estimate of $0.05 by ($0.06). The firm had revenue of $673.80 million during the quarter, compared to the consensus estimate of $673.65 million. Vestis had a negative net margin of 0.89% and a positive return on equity of 5.36%. The firm's revenue for the quarter 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.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Barclays lowered their price objective 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. JPMorgan Chase & Co. reiterated an "underweight" rating and issued a $6.00 price objective (up from $5.00) on shares of Vestis in a research report on Monday, July 14th. Two 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.com, the company has an average rating of "Hold" and a consensus price target of $9.25.

Insiders Place Their Bets

In other news, COO William J. Seward acquired 10,000 shares of the stock in a transaction on Thursday, May 8th. The stock was acquired at an average price of $6.23 per share, with a total value of $62,300.00. Following the completion of the transaction, the chief operating officer owned 130,862 shares of the company's stock, valued at $815,270.26. This represents a 8.27% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Keith A. Meister bought 377,277 shares of Vestis stock in a transaction dated Friday, May 23rd. The stock was acquired at an average cost of $5.89 per share, for a total transaction of $2,222,161.53. Following the completion of the transaction, the director directly owned 18,380,501 shares in the company, valued at approximately $108,261,150.89. This trade represents a 2.10% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders have bought 880,675 shares of company stock worth $5,271,632. Company insiders own 13.60% of the company's stock.

Hedge Funds Weigh In On Vestis

A number of hedge funds have recently bought and sold shares of the company. True Wealth Design LLC bought a new stake in shares of Vestis during the fourth quarter valued at approximately $29,000. Spire Wealth Management increased its holdings in shares of Vestis by 168.2% in the 1st quarter. Spire Wealth Management now owns 5,110 shares of the company's stock worth $51,000 after purchasing an additional 3,205 shares in the last quarter. Copeland Capital Management LLC raised its stake 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 purchasing an additional 1,346 shares during the last quarter. KBC Group NV lifted its stake in Vestis by 54.2% during the 1st quarter. KBC Group NV now owns 7,309 shares of the company's stock valued at $72,000 after acquiring an additional 2,568 shares during the period. Finally, Sterling Capital Management LLC raised its holdings in shares of Vestis by 45.9% during the fourth quarter. Sterling Capital Management LLC now owns 7,882 shares of the company's stock valued at $120,000 after purchasing an additional 2,479 shares during the last quarter. Institutional investors own 97.40% of the company's stock.

Vestis Stock Down 7.6%

The company has a quick ratio of 1.41, a current ratio of 1.87 and a debt-to-equity ratio of 1.46. The company has a market cap of $729.40 million, a PE ratio of -30.64 and a beta of 0.96. The company's fifty day moving average is $6.10 and its 200-day moving average is $8.89.

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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