WEX (NYSE:WEX) Reaches New 1-Year Low - Should You Sell?

Key Points

• WEX shares hit a new 52-week low, falling to as low as $125.29 as investors reacted to continued weakness in the stock, which is now well below its 50-day and 200-day moving averages.
• Despite the stock slide, analysts still see upside potential: the consensus rating is “Hold,” but the average price target is $173.70, and several firms have recently issued or raised targets, including Buy ratings from Robert W. Baird and Loop Capital.
• Fundamentals and capital returns remain solid, with Q1 earnings and revenue topping estimates, full-year and Q2 guidance set above current expectations, and the board authorizing a $1 billion share buyback.

Shares of WEX Inc. (NYSE:WEX - Get Free Report) hit a new 52-week low on Monday . The company traded as low as $125.29 and last traded at $127.1640, with a volume of 698715 shares changing hands. The stock had previously closed at $127.53.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on WEX shares. Robert W. Baird increased their price objective on shares of WEX from $210.00 to $220.00 and gave the stock an "outperform" rating in a research report on Thursday, April 23rd. Raymond James Financial restated a "market perform" rating on shares of WEX in a report on Friday, March 6th. Morgan Stanley upped their price target on shares of WEX from $146.00 to $158.00 and gave the stock an "equal weight" rating in a research report on Tuesday, April 21st. Loop Capital began coverage on WEX in a research report on Monday, April 27th. They issued a "buy" rating and a $195.00 price objective on the stock. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on WEX from $180.00 to $160.00 and set a "hold" rating on the stock in a research note on Friday, June 12th. Four analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $173.70.

WEX Stock Performance

The company has a market capitalization of $4.44 billion, a PE ratio of 14.40, a PEG ratio of 0.78 and a beta of 0.85. The company has a debt-to-equity ratio of 2.83, a quick ratio of 1.05 and a current ratio of 1.05. The company has a 50 day moving average price of $148.73 and a 200 day moving average price of $152.85.

WEX (NYSE:WEX - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The business services provider reported $4.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.92 by $0.23. The business had revenue of $673.80 million during the quarter, compared to analyst estimates of $660.96 million. WEX had a net margin of 11.50% and a return on equity of 42.66%. The business's revenue was up 5.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.51 earnings per share. WEX has set its FY 2026 guidance at 18.950-19.550 EPS and its Q2 2026 guidance at 4.930-5.130 EPS. Equities analysts forecast that WEX Inc. will post 16.77 EPS for the current year.

WEX announced that its board has authorized a stock buyback program on Thursday, May 14th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to reacquire up to 21.2% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Insider Activity

In other news, Director James R. Groch purchased 1,500 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The stock was acquired at an average cost of $142.95 per share, for a total transaction of $214,425.00. Following the completion of the purchase, the director owned 17,957 shares of the company's stock, valued at approximately $2,566,953.15. This trade represents a 9.11% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Joel Alan Dearborn, Jr. sold 3,500 shares of the business's stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $175.00, for a total value of $612,500.00. Following the completion of the sale, the chief operating officer directly owned 22,872 shares of the company's stock, valued at approximately $4,002,600. This represents a 13.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 8,200 shares of company stock worth $1,318,798. 1.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in WEX. American Century Companies Inc. increased its position in shares of WEX by 1.9% during the second quarter. American Century Companies Inc. now owns 3,205 shares of the business services provider's stock worth $471,000 after acquiring an additional 60 shares in the last quarter. First Horizon Corp lifted its position in WEX by 65.7% in the 4th quarter. First Horizon Corp now owns 237 shares of the business services provider's stock valued at $35,000 after acquiring an additional 94 shares in the last quarter. Choreo LLC boosted its stake in WEX by 3.4% in the 3rd quarter. Choreo LLC now owns 2,894 shares of the business services provider's stock worth $456,000 after purchasing an additional 95 shares during the period. Fulcrum Asset Management LLP increased its holdings in WEX by 1.7% during the 3rd quarter. Fulcrum Asset Management LLP now owns 5,628 shares of the business services provider's stock worth $887,000 after purchasing an additional 95 shares in the last quarter. Finally, Eukles Asset Management raised its stake in shares of WEX by 2.8% in the 4th quarter. Eukles Asset Management now owns 3,429 shares of the business services provider's stock valued at $511,000 after purchasing an additional 95 shares during the period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.