Vestis (NYSE:VSTS) Rating Increased to Hold at Wall Street Zen

Key Points

• Vestis (NYSE:VSTS) has been upgraded from a "sell" to a "hold" rating by analysts at Wall Street Zen, indicating a more favorable outlook for the stock.
• Barclays and JPMorgan have reduced their price targets for Vestis to $5.00 and $5.50, respectively, reflecting a lack of confidence in the company's performance.
• Insiders have shown confidence in Vestis, with Director Keith A. Meister purchasing 377,277 shares and overall insider ownership at 13.60% of the company's stock.

Wall Street Zen upgraded shares of Vestis (NYSE:VSTS - Free Report) from a sell rating to a hold rating in a research report report published on Saturday morning.

Several other brokerages also recently weighed in on VSTS. 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, August 7th. Barclays reduced their target price on Vestis from $10.00 to $5.00 and set an "underweight" rating for the company in a report on Friday, May 9th. Two research analysts have rated the stock with a sell rating and three have assigned a hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $9.13.

Vestis Stock Performance

Shares of VSTS traded down $0.07 during mid-day trading on Friday, reaching $4.37. 1,613,422 shares of the company's stock were exchanged, compared to its average volume of 2,374,250. The company has a debt-to-equity ratio of 1.45, a current ratio of 1.84 and a quick ratio of 1.42. The stock has a market capitalization of $576.67 million, a PE ratio of -19.02 and a beta of 0.96. The business's fifty day simple moving average is $6.01 and its 200-day simple moving average is $8.52. Vestis has a 52-week low of $4.32 and a 52-week high of $17.83.

Vestis (NYSE:VSTS - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.05 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.05. Vestis had a negative net margin of 1.11% and a positive return on equity of 3.76%. The business had revenue of $673.80 million for the quarter, compared to analyst estimates of $673.65 million. During the same period last year, the firm posted $0.16 earnings per share. The company's revenue for the quarter was down 3.5% compared to the same quarter last year. On average, equities research analysts expect that Vestis will post 0.7 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Keith A. Meister bought 377,277 shares of the business's stock in a transaction that occurred on Friday, May 23rd. The stock was purchased at an average price of $5.89 per share, with a total value of $2,222,161.53. Following the purchase, the director owned 18,380,501 shares of the company's stock, valued at $108,261,150.89. This trade represents a 2.10% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Over the last three months, insiders have bought 800,675 shares of company stock valued at $4,777,432. Insiders own 13.60% of the company's stock.

Institutional Trading of Vestis

Several hedge funds and other institutional investors have recently added to or reduced their stakes in VSTS. Russell Investments Group Ltd. grew its holdings in Vestis by 10.1% in the 4th quarter. Russell Investments Group Ltd. now owns 571,625 shares of the company's stock valued at $8,712,000 after buying an additional 52,247 shares during the period. Cerity Partners LLC grew its holdings in Vestis by 35.7% in the 4th quarter. Cerity Partners LLC now owns 97,101 shares of the company's stock valued at $1,477,000 after buying an additional 25,523 shares during the period. Bank of Montreal Can grew its holdings in Vestis by 11.1% in the 4th quarter. Bank of Montreal Can now owns 15,315 shares of the company's stock valued at $233,000 after buying an additional 1,534 shares during the period. Invesco Ltd. grew its holdings in Vestis by 2.7% in the 4th quarter. Invesco Ltd. now owns 606,901 shares of the company's stock valued at $9,249,000 after buying an additional 15,926 shares during the period. Finally, Raymond James Financial Inc. purchased a new stake in Vestis in the 4th quarter valued at about $2,194,000. Hedge funds and other institutional investors own 97.40% of the company's stock.

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.