Vestis (NYSE:VSTS) Trading Up 7.1% - Should You Buy?

Key Points

• Vestis stock jumped 7.1% on Thursday, trading as high as $16.58 after closing at $15.51 the prior day. Trading volume was lighter than usual at about 625,100 shares.
• Analyst sentiment remains mixed: while Zacks upgraded Vestis to strong-buy, several firms still have sell or underweight views. MarketBeat shows an average rating of “Reduce” with a consensus price target of $9.50.
• The company recently beat quarterly earnings expectations, reporting $0.16 EPS versus the $0.09 estimate and revenue of $659.44 million. Vestis also has strong institutional ownership, with hedge funds and other investors holding 97.4% of shares.

Vestis Corporation (NYSE:VSTS - Get Free Report)'s stock price was up 7.1% during trading on Thursday . The stock traded as high as $16.58 and last traded at $16.6150. Approximately 625,100 shares were traded during mid-day trading, a decline of 62% from the average session volume of 1,660,889 shares. The stock had previously closed at $15.51.

Analysts Set New Price Targets

VSTS has been the topic of several analyst reports. Weiss Ratings lowered Vestis from a "sell (d)" rating to a "sell (d-)" rating in a report on Wednesday, May 13th. Barclays boosted their target price on shares of Vestis from $6.00 to $9.00 and gave the company an "underweight" rating in a report on Friday, May 15th. Zacks Research raised shares of Vestis from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 10th. The Goldman Sachs Group reiterated a "sell" rating and issued a $7.50 price objective on shares of Vestis in a report on Wednesday, May 13th. Finally, Robert W. Baird raised their target price on Vestis from $10.00 to $14.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 13th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have assigned a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat, Vestis presently has an average rating of "Reduce" and a consensus price target of $9.50.

Vestis Stock Performance

The company has a debt-to-equity ratio of 1.44, a current ratio of 2.13 and a quick ratio of 1.69. The firm has a market capitalization of $2.17 billion, a price-to-earnings ratio of -117.56 and a beta of 0.98. The firm has a 50 day moving average price of $12.93 and a 200-day moving average price of $9.57.

Vestis (NYSE:VSTS - Get Free Report) last posted its earnings results on Tuesday, May 12th. The company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.09 by $0.07. Vestis had a positive return on equity of 5.27% and a negative net margin of 0.63%.The firm had revenue of $659.44 million for the quarter, compared to analyst estimates of $655.32 million. During the same quarter in the prior year, the company posted ($0.05) earnings per share. Vestis's revenue for the quarter was down .9% compared to the same quarter last year. As a group, sell-side analysts expect that Vestis Corporation will post 0.52 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Vestis

Several large investors have recently bought and sold shares of VSTS. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Vestis by 10.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 355,493 shares of the company's stock valued at $3,519,000 after purchasing an additional 34,809 shares during the last quarter. Acadian Asset Management LLC acquired a new stake in shares of Vestis in the first quarter valued at approximately $762,000. Creative Planning acquired a new stake in shares of Vestis in the second quarter valued at approximately $65,000. JPMorgan Chase & Co. grew its position in shares of Vestis by 739.5% during the second quarter. JPMorgan Chase & Co. now owns 675,770 shares of the company's stock worth $3,872,000 after acquiring an additional 595,276 shares during the last quarter. Finally, American Century Companies Inc. increased its holdings in shares of Vestis by 9.8% in the 2nd quarter. American Century Companies Inc. now owns 275,531 shares of the company's stock valued at $1,579,000 after acquiring an additional 24,695 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. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries.

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