VSE (NASDAQ:VSEC) Sets New 12-Month High - Still a Buy?

Key Points

• VSE Corporation (NASDAQ:VSEC) achieved a new 52-week high of $140.75, trading at $139.55 with a volume of 4,644 shares on Tuesday.
• Analysts have raised their price targets for VSE, with Royal Bank of Canada setting a new target of $150.00 and Truist Financial adjusting theirs to $140.00, both indicating strong buy sentiments.
• VSE reported a quarterly earnings increase to $0.78 per share, exceeding estimates, and declared a quarterly dividend of $0.10 per share, showcasing solid financial performance.

Shares of VSE Corporation (NASDAQ:VSEC - Get Free Report) hit a new 52-week high on Tuesday . The company traded as high as $140.75 and last traded at $139.55, with a volume of 4644 shares traded. The stock had previously closed at $138.80.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Truist Financial lifted their price objective on VSE from $130.00 to $140.00 and gave the stock a "buy" rating in a research report on Thursday, May 8th. B. Riley lifted their price objective on VSE from $145.00 to $150.00 and gave the stock a "buy" rating in a research report on Thursday, May 8th. Finally, Royal Bank Of Canada lifted their price objective on VSE from $150.00 to $180.00 and gave the stock an "outperform" rating in a research report on Friday. One research analyst has rated the stock with a sell rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $136.00.

VSE Stock Down 6.6%

The company has a quick ratio of 2.12, a current ratio of 3.90 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $3.02 billion, a P/E ratio of 130.60 and a beta of 1.26. The company has a 50-day moving average of $132.97 and a two-hundred day moving average of $119.96.

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, beating analysts' consensus estimates of $0.69 by $0.28. The business had revenue of $272.14 million during the quarter, compared to analysts' expectations of $267.39 million. VSE had a return on equity of 7.37% and a net margin of 1.94%. The firm's quarterly revenue was up 41.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.47 earnings per share. On average, research analysts predict that VSE Corporation will post 2.96 EPS for the current year.

VSE Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 29th. Shareholders of record on Wednesday, October 15th will be paid a dividend of $0.10 per share. The ex-dividend date is Wednesday, October 15th. This represents a $0.40 dividend on an annualized basis and a yield of 0.3%. VSE's payout ratio is presently 35.71%.

Insider Transactions at VSE

In other VSE news, Director Anita D. Britt sold 2,869 shares of VSE stock in a transaction on Friday, May 9th. The stock was sold at an average price of $129.38, for a total transaction of $371,191.22. Following the completion of the transaction, the director owned 3,837 shares in the company, valued at approximately $496,431.06. The trade was a 42.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 14.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Wealth Enhancement Advisory Services LLC raised its stake in shares of VSE by 94.3% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 4,608 shares of the construction company's stock worth $553,000 after purchasing an additional 2,236 shares during the last quarter. Amalgamated Bank raised its stake in shares of VSE by 36.5% in the first quarter. Amalgamated Bank now owns 610 shares of the construction company's stock worth $73,000 after purchasing an additional 163 shares during the last quarter. KBC Group NV purchased a new position in shares of VSE in the first quarter worth $99,000. Arizona State Retirement System raised its stake in shares of VSE by 15.2% in the first quarter. Arizona State Retirement System now owns 5,528 shares of the construction company's stock worth $663,000 after purchasing an additional 730 shares during the last quarter. Finally, Teacher Retirement System of Texas purchased a new position in shares of VSE in the first quarter worth $337,000. Hedge funds and other 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.