VSE Corporation (NASDAQ:VSEC) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• VSE Corporation (NASDAQ:VSEC) has a consensus rating of "Moderate Buy" from brokerages, with an average 12-month target price of $161.50.
• The company reported a 41.1% increase in revenue year-over-year for the last quarter, with earnings per share of $0.97, surpassing estimates.
• VSE announced a quarterly dividend of $0.10, which will be paid to shareholders on October 29th, representing an annual yield of 0.3%.

VSE Corporation (NASDAQ:VSEC - Get Free Report) has earned a consensus rating of "Moderate Buy" from the seven brokerages that are presently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $161.50.

A number of equities research analysts recently weighed in on the stock. Royal Bank Of Canada boosted their price objective on shares of VSE from $150.00 to $180.00 and gave the company an "outperform" rating in a research report on Friday, August 1st. Weiss Ratings restated a "hold (c)" rating on shares of VSE in a research note on Saturday, September 27th. Wolfe Research initiated coverage on VSE in a research note on Monday, September 29th. They issued an "outperform" rating and a $190.00 target price for the company. Finally, Stifel Nicolaus assumed coverage on VSE in a research note on Tuesday, September 16th. They issued a "buy" rating and a $199.00 target price for the company.

VSE Price Performance

Shares of VSEC opened at $154.96 on Friday. The stock has a 50 day moving average of $163.28 and a 200-day moving average of $138.97. VSE has a 52 week low of $85.37 and a 52 week high of $174.55. The firm has a market cap of $3.20 billion, a price-to-earnings ratio of 138.36 and a beta of 1.40. The company has a current ratio of 3.73, a quick ratio of 1.44 and a debt-to-equity ratio of 0.38.

VSE (NASDAQ:VSEC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The construction company reported $0.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.69 by $0.28. The firm had revenue of $272.14 million for the quarter, compared to analysts' expectations of $267.39 million. VSE had a return on equity of 7.25% and a net margin of 1.94%.The firm's revenue for the quarter was up 41.1% on a year-over-year basis. During the same period last year, the business posted $0.47 earnings per share. VSE has set its FY 2025 guidance at EPS. As a group, analysts forecast that VSE will post 2.96 EPS for the current year.

VSE Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 29th. Shareholders of record on Wednesday, October 15th will be given a $0.10 dividend. The ex-dividend date of this dividend is Wednesday, October 15th. This represents a $0.40 annualized dividend and a yield of 0.3%. VSE's dividend payout ratio (DPR) is currently 35.71%.

Hedge Funds Weigh In On VSE

Institutional investors have recently modified their holdings of the company. Wealth Enhancement Advisory Services LLC grew its position in shares of VSE by 94.3% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 4,608 shares of the construction company's stock worth $553,000 after acquiring an additional 2,236 shares during the last quarter. Amalgamated Bank boosted its stake in VSE by 36.5% during the 1st quarter. Amalgamated Bank now owns 610 shares of the construction company's stock valued at $73,000 after purchasing an additional 163 shares during the period. KBC Group NV bought a new stake in shares of VSE during the first quarter valued at approximately $99,000. Arizona State Retirement System raised its holdings in shares of VSE by 15.2% during the first quarter. Arizona State Retirement System now owns 5,528 shares of the construction company's stock valued at $663,000 after buying an additional 730 shares during the last quarter. Finally, Teacher Retirement System of Texas bought a new stake in shares of VSE during the first quarter valued at approximately $337,000. Institutional investors own 91.54% of the company's stock.

About VSE

VSE Corporation operates as a diversified aftermarket products and services company in the United States. The company operates through two segments, Aviation and Fleet. The Aviation segment provides aftermarket parts supply and distribution; maintenance, repair, and overhaul services for components and engine accessories supporting commercial, business, and general aviation operators.

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