Zacks Research Downgrades WEX (NYSE:WEX) to Hold

Key Points

• WEX was downgraded from a "strong-buy" to a "hold" rating by Zacks Research, indicating a shift in analysts' outlook on the company's stock performance.
• Several analysts have raised their target prices for WEX, with the average target price currently at $179.82, reflecting mixed sentiments on the company’s stock potential.
• Insider selling activity was noted, with COO Carlos Carriedo and another insider reducing their shareholdings, raising questions about the company's current valuation and future performance.

Zacks Research cut shares of WEX (NYSE:WEX - Free Report) from a strong-buy rating to a hold rating in a report released on Monday,Zacks.com reports.

Other equities analysts have also issued reports about the company. Robert W. Baird increased their price objective on WEX from $186.00 to $198.00 and gave the stock an "outperform" rating in a report on Thursday, July 24th. Jefferies Financial Group increased their target price on WEX from $130.00 to $135.00 and gave the company a "hold" rating in a report on Tuesday, May 27th. Morgan Stanley increased their target price on WEX from $142.00 to $170.00 and gave the company an "equal weight" rating in a report on Friday, July 25th. UBS Group increased their target price on WEX from $138.00 to $185.00 and gave the company a "neutral" rating in a report on Friday, July 25th. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on shares of WEX in a research note on Thursday, July 17th. They issued a "hold" rating and a $150.00 price target on the stock. Three analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to data from MarketBeat.com, WEX presently has an average rating of "Hold" and a consensus target price of $179.82.

WEX Stock Down 2.8%

Shares of NYSE:WEX traded down $4.73 during trading on Monday, hitting $163.60. The company's stock had a trading volume of 909,664 shares, compared to its average volume of 311,639. The stock's 50-day moving average price is $168.59 and its two-hundred day moving average price is $149.76. WEX has a fifty-two week low of $110.45 and a fifty-two week high of $217.47. The company has a market capitalization of $5.60 billion, a PE ratio of 20.68, a PEG ratio of 1.57 and a beta of 1.31. The company has a debt-to-equity ratio of 3.99, a quick ratio of 1.04 and a current ratio of 1.04.

Insiders Place Their Bets

In other WEX news, COO Carlos Carriedo sold 875 shares of WEX stock in a transaction on Thursday, July 31st. The shares were sold at an average price of $171.68, for a total transaction of $150,220.00. Following the completion of the sale, the chief operating officer owned 5,270 shares of the company's stock, valued at approximately $904,753.60. The trade was a 14.24% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Ann Elena Drew sold 1,931 shares of WEX stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $171.69, for a total transaction of $331,533.39. Following the sale, the insider directly owned 7,295 shares of the company's stock, valued at $1,252,478.55. This represents a 20.93% decrease in their position. The disclosure for this sale can be found here. 1.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On WEX

Hedge funds and other institutional investors have recently made changes to their positions in the company. Envestnet Asset Management Inc. boosted its position in shares of WEX by 1.0% during the first quarter. Envestnet Asset Management Inc. now owns 59,053 shares of the business services provider's stock worth $9,272,000 after purchasing an additional 578 shares in the last quarter. GAMMA Investing LLC boosted its position in shares of WEX by 27,871.3% during the first quarter. GAMMA Investing LLC now owns 69,089 shares of the business services provider's stock worth $10,848,000 after purchasing an additional 68,842 shares in the last quarter. Jane Street Group LLC boosted its position in shares of WEX by 399.9% during the first quarter. Jane Street Group LLC now owns 210,707 shares of the business services provider's stock worth $33,085,000 after purchasing an additional 168,558 shares in the last quarter. Cerity Partners LLC boosted its position in shares of WEX by 88.5% during the first quarter. Cerity Partners LLC now owns 10,002 shares of the business services provider's stock worth $1,571,000 after purchasing an additional 4,695 shares in the last quarter. Finally, Optimize Financial Inc bought a new position in shares of WEX during the first quarter worth $389,000. 97.47% of the stock is owned by institutional investors.

WEX Company Profile

WEX Inc operates a commerce platform in the United States and internationally. The Mobility segment offers fleet vehicle payment solutions, transaction processing, and information management services; and provides account activation and account retention services; authorization and billing inquiries, and account maintenance services; account management; credit and collections services; merchant services; analytics solutions; and ancillary services and offerings.