VSE (NASDAQ:VSEC) Trading Down 5.2% - What's Next?

Key Points

• VSE Corporation's stock price declined by 5.2%, trading at $163.72 after a low of $164.71, with a significant drop in trading volume.
• Analysts have raised the price target for VSE, with Royal Bank of Canada increasing it from $150 to $180, and Stifel Nicolaus setting a buy rating with a target of $199.
• The company reported impressive quarterly earnings with $0.97 earnings per share, exceeding estimates and marking a 41.1% revenue increase compared to the same quarter last year.

VSE Corporation (NASDAQ:VSEC - Get Free Report) was down 5.2% on Friday . The company traded as low as $164.71 and last traded at $163.72. Approximately 90,855 shares changed hands during trading, a decline of 63% from the average daily volume of 243,489 shares. The stock had previously closed at $172.66.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on VSEC shares. Royal Bank Of Canada lifted their price target on shares of VSE from $150.00 to $180.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. Stifel Nicolaus initiated coverage on shares of VSE in a research report on Tuesday, September 16th. They issued a "buy" rating and a $199.00 price objective on the stock. Five equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, VSE currently has a consensus rating of "Buy" and an average target price of $155.80.

VSE Stock Performance

The stock's fifty day moving average price is $155.70 and its two-hundred day moving average price is $134.86. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.44 and a current ratio of 3.73. The company has a market cap of $3.41 billion, a P/E ratio of 47.90 and a beta of 1.37.

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

VSE Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 29th. Stockholders of record on Wednesday, October 15th will be given a dividend of $0.10 per share. The ex-dividend date is Wednesday, October 15th. This represents a $0.40 annualized dividend and a dividend yield of 0.2%. VSE's dividend payout ratio is 35.71%.

Institutional Investors Weigh In On VSE

Several large investors have recently modified their holdings of the company. New York State Common Retirement Fund grew its holdings in VSE by 12.7% in the second quarter. New York State Common Retirement Fund now owns 188,612 shares of the construction company's stock worth $24,704,000 after purchasing an additional 21,293 shares during the period. Rhumbline Advisers lifted its stake in shares of VSE by 29.8% in the second quarter. Rhumbline Advisers now owns 32,625 shares of the construction company's stock valued at $4,273,000 after buying an additional 7,484 shares in the last quarter. Handelsbanken Fonder AB bought a new position in shares of VSE in the second quarter valued at $498,000. BNP PARIBAS ASSET MANAGEMENT Holding S.A. bought a new position in shares of VSE in the second quarter valued at $28,000. Finally, Emerald Mutual Fund Advisers Trust lifted its stake in shares of VSE by 86.4% in the second quarter. Emerald Mutual Fund Advisers Trust now owns 132,416 shares of the construction company's stock valued at $17,344,000 after buying an additional 61,392 shares in the last quarter. 91.54% of the stock is currently owned by institutional investors and hedge funds.

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.