WEX (NYSE:WEX) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded WEX from a “buy” to a “hold,” reinforcing a broadly cautious analyst outlook. The stock now has a consensus Hold rating and an average price target of $169.27.
• WEX recently reported better-than-expected quarterly results, with EPS of $4.15 versus estimates of $3.92 and revenue of $673.8 million topping forecasts. The company also raised guidance for FY2026 and Q2 2026.
• The board authorized a $1 billion share buyback, equal to about 21.2% of outstanding shares, which may signal management believes the stock is undervalued. Meanwhile, insiders have sold shares recently, and institutional investors own 97.47% of the company.

WEX (NYSE:WEX - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday.

Several other research firms have also recently commented on WEX. Morgan Stanley lifted their target price on shares of WEX from $146.00 to $158.00 and gave the stock an "equal weight" rating in a research note on Tuesday, April 21st. Cantor Fitzgerald lifted their price target on shares of WEX from $158.00 to $166.00 and gave the company a "neutral" rating in a report on Monday, February 9th. UBS Group set a $165.00 price target on shares of WEX and gave the company a "neutral" rating in a report on Friday, February 6th. Raymond James Financial reiterated a "market perform" rating on shares of WEX in a report on Friday, March 6th. Finally, Loop Capital assumed coverage on shares of WEX in a report on Monday, April 27th. They issued a "buy" rating and a $195.00 price target on the stock. Four investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $169.27.

WEX Stock Up 1.0%

WEX stock opened at $150.64 on Friday. The stock has a market capitalization of $5.22 billion, a P/E ratio of 16.91, a PEG ratio of 0.94 and a beta of 0.87. The company has a debt-to-equity ratio of 2.83, a quick ratio of 1.05 and a current ratio of 1.05. WEX has a one year low of $128.91 and a one year high of $186.85. The company has a 50 day moving average price of $154.15 and a two-hundred day moving average price of $153.32.

WEX (NYSE:WEX - Get Free Report) last released its earnings results on Wednesday, April 22nd. The business services provider reported $4.15 EPS for the quarter, topping the consensus estimate of $3.92 by $0.23. The firm had revenue of $673.80 million during the quarter, compared to analysts' expectations of $660.96 million. WEX had a net margin of 11.50% and a return on equity of 42.66%. WEX's revenue for the quarter was up 5.8% on a year-over-year basis. During the same period in the previous year, the company 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. As a group, sell-side analysts expect that WEX will post 16.48 EPS for the current year.

WEX declared that its Board of Directors has authorized a share buyback plan on Thursday, May 14th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to buy up to 21.2% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In other WEX news, CAO Jennifer Kimball sold 715 shares of WEX stock in a transaction on Tuesday, March 17th. The shares were 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 in the company, valued at $978,957.46. This trade represents a 10.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Sara Trickett sold 1,815 shares of WEX stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $149.95, for a total transaction of $272,159.25. Following the transaction, the insider owned 2,137 shares in the company, valued at $320,443.15. The trade was a 45.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 12,872 shares of company stock worth $2,031,760 over the last 90 days. Company insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On WEX

Hedge funds and other institutional investors have recently made changes to their positions in the business. Lightrock Netherlands B.V. lifted its holdings in shares of WEX by 19.7% during the 3rd quarter. Lightrock Netherlands B.V. now owns 43,800 shares of the business services provider's stock valued at $6,900,000 after acquiring an additional 7,200 shares in the last quarter. Earnest Partners LLC lifted its holdings in shares of WEX by 1.1% during the 3rd quarter. Earnest Partners LLC now owns 907,803 shares of the business services provider's stock valued at $143,006,000 after acquiring an additional 10,027 shares in the last quarter. Crossmark Global Holdings Inc. lifted its holdings in shares of WEX by 1,289.3% during the 3rd quarter. Crossmark Global Holdings Inc. now owns 19,797 shares of the business services provider's stock valued at $3,119,000 after acquiring an additional 18,372 shares in the last quarter. Citigroup Inc. lifted its holdings in shares of WEX by 103.8% during the 3rd quarter. Citigroup Inc. now owns 24,088 shares of the business services provider's stock valued at $3,795,000 after acquiring an additional 12,266 shares in the last quarter. Finally, Intech Investment Management LLC lifted its holdings in shares of WEX by 289.4% during the 3rd quarter. Intech Investment Management LLC now owns 14,066 shares of the business services provider's stock valued at $2,216,000 after acquiring an additional 10,454 shares in the last quarter. Institutional investors and hedge funds own 97.47% of the company's stock.

WEX Company Profile

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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