Wall Street Zen Upgrades WEX (NYSE:WEX) to Buy

Key Points

• Wall Street Zen upgraded WEX from “hold” to “buy,” adding to a mixed analyst picture where the stock still carries a consensus “hold” rating and an average price target of $169.27.
• WEX reported better-than-expected quarterly results, with EPS of $4.15 topping estimates and revenue of $673.8 million exceeding forecasts. The company also raised guidance, projecting FY 2026 EPS of 18.95 to 19.55.
• The board approved a $1 billion share buyback program, allowing repurchases of up to 21.2% of outstanding shares, which is often viewed as a sign management believes the stock is undervalued.

WEX (NYSE:WEX - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday.

Other analysts have also issued reports about the company. Cantor Fitzgerald increased their target price on WEX from $158.00 to $166.00 and gave the stock a "neutral" rating in a report on Monday, February 9th. Mizuho reduced their target price on WEX from $180.00 to $170.00 and set an "outperform" rating on the stock in a report on Friday, February 6th. Loop Capital started coverage on WEX in a report on Monday, April 27th. They set a "buy" rating and a $195.00 target price on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of WEX in a report on Monday, April 20th. Finally, Robert W. Baird raised their price objective on WEX from $210.00 to $220.00 and gave the company an "outperform" rating in a research note on Thursday, April 23rd. Four research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $169.27.

WEX Stock Up 5.4%

WEX stock opened at $141.20 on Friday. The company has a debt-to-equity ratio of 2.83, a current ratio of 1.05 and a quick ratio of 1.05. The stock has a market capitalization of $4.90 billion, a price-to-earnings ratio of 15.85, a PEG ratio of 0.84 and a beta of 0.87. The business's fifty day moving average price is $155.90 and its two-hundred day moving average price is $153.63. WEX has a fifty-two week low of $128.91 and a fifty-two week high of $186.85.

WEX (NYSE:WEX - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The business services provider reported $4.15 earnings per share for the quarter, topping the consensus estimate of $3.92 by $0.23. The firm had revenue of $673.80 million for the quarter, compared to analysts' expectations of $660.96 million. WEX had a return on equity of 42.66% and a net margin of 11.50%.The company's quarterly revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the business earned $3.51 EPS. WEX has set its FY 2026 guidance at 18.950-19.550 EPS and its Q2 2026 guidance at 4.930-5.130 EPS. On average, equities analysts anticipate that WEX will post 16.34 earnings per share for the current year.

WEX declared that its board has initiated a stock buyback plan on Thursday, May 14th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the business services provider to buy up to 21.2% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, insider Sara Trickett sold 1,815 shares of the firm's stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $149.95, for a total transaction of $272,159.25. Following the completion of the transaction, the insider directly owned 2,137 shares in the company, valued at $320,443.15. This trade represents a 45.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Jennifer Kimball sold 715 shares of the firm's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $157.82, for a total value of $112,841.30. Following the transaction, the chief accounting officer owned 6,203 shares of the company's stock, valued at $978,957.46. This trade represents a 10.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 14,447 shares of company stock valued at $2,283,602 over the last three months. Insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On WEX

Hedge funds have recently made changes to their positions in the stock. Los Angeles Capital Management LLC bought a new stake in WEX in the fourth quarter worth approximately $25,000. Quent Capital LLC bought a new stake in WEX in the third quarter worth approximately $28,000. First Horizon Corp increased its holdings in WEX by 65.7% in the fourth quarter. First Horizon Corp now owns 237 shares of the business services provider's stock worth $35,000 after purchasing an additional 94 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in WEX by 368.1% in the third quarter. Caitong International Asset Management Co. Ltd now owns 220 shares of the business services provider's stock worth $35,000 after purchasing an additional 173 shares in the last quarter. Finally, Hantz Financial Services Inc. grew its stake in WEX by 162.1% in the third quarter. Hantz Financial Services Inc. now owns 228 shares of the business services provider's stock valued at $36,000 after acquiring an additional 141 shares during the period. 97.47% of the stock is currently owned by institutional investors.

About WEX

WEX Inc is a global financial technology company specializing in business payment solutions for fleet, travel, and corporate payments. The company delivers software-driven platforms and card-based services that help businesses automate payment processes, manage expenses and improve operational efficiency across a range of industries, including transportation, healthcare and government.

Founded in 1983 as Wright Express in Portland, Maine, the company began by offering fuel card services to trucking fleets.

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