WEX (NYSE:WEX) Shares Gap Up - Should You Buy?

Key Points

• WEX shares gapped up Friday, opening at $139.37 after closing at $134.02 and last trading around $140.48, up about 4.9%.
• Analyst sentiment remains mixed: the stock has a consensus Hold rating with an average price target of $169.27, though Loop Capital recently initiated coverage with a Buy and a $195 target.
• WEX reported strong Q1 earnings, beating EPS and revenue estimates, and its board authorized a $1 billion share buyback that could repurchase up to 21.2% of outstanding shares.

Shares of WEX Inc. (NYSE:WEX - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $134.02, but opened at $139.37. WEX shares last traded at $140.4760, with a volume of 39,713 shares traded.

Wall Street Analyst Weigh In

WEX has been the subject of a number of research reports. Cantor Fitzgerald boosted their target price on shares of WEX from $158.00 to $166.00 and gave the stock a "neutral" rating in a research note on Monday, February 9th. Morgan Stanley boosted 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. Loop Capital began coverage on shares of WEX in a research note on Monday, April 27th. They set a "buy" rating and a $195.00 price objective for the company. Wall Street Zen cut shares of WEX from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Finally, UBS Group set a $165.00 price objective on shares of WEX and gave the company a "neutral" rating in a research note on Friday, February 6th. Four equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $169.27.

WEX Stock Up 4.9%

The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 2.83. The company has a market capitalization of $4.87 billion, a price-to-earnings ratio of 15.78, a price-to-earnings-growth ratio of 0.85 and a beta of 0.87. The firm's fifty day simple moving average is $156.38 and its two-hundred day simple moving average is $153.71.

WEX (NYSE:WEX - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The business services provider reported $4.15 earnings per share for the quarter, beating the consensus estimate of $3.92 by $0.23. WEX had a net margin of 11.50% and a return on equity of 42.66%. The company had revenue of $673.80 million for the quarter, compared to analyst estimates of $660.96 million. During the same period in the previous year, the business posted $3.51 EPS. WEX's revenue was up 5.8% on a year-over-year basis. WEX has set its FY 2026 guidance at 18.950-19.550 EPS and its Q2 2026 guidance at 4.930-5.130 EPS. Sell-side analysts anticipate that WEX Inc. will post 16.34 EPS for the current year.

WEX announced that its board has initiated a share buyback program on Thursday, May 14th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the business services provider to purchase up to 21.2% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Insider Activity at WEX

In other WEX news, COO Robert Joseph Deshaies sold 3,238 shares of the stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $150.22, for a total transaction of $486,412.36. Following the sale, the chief operating officer directly owned 14,859 shares in the company, valued at $2,232,118.98. This represents a 17.89% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, COO Joel Alan Dearborn, Jr. sold 3,500 shares of the stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $175.00, for a total transaction of $612,500.00. Following the sale, the chief operating officer owned 22,872 shares in the company, valued at approximately $4,002,600. This trade represents a 13.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,447 shares of company stock worth $2,283,602 over the last 90 days. 1.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On WEX

A number of large investors have recently modified their holdings of WEX. AQR Capital Management LLC increased its position in shares of WEX by 794.0% in the 4th quarter. AQR Capital Management LLC now owns 889,802 shares of the business services provider's stock valued at $132,563,000 after purchasing an additional 790,271 shares during the last quarter. Turtle Creek Asset Management Inc. purchased a new stake in shares of WEX in the 3rd quarter valued at approximately $93,289,000. Par Capital Management Inc. increased its position in shares of WEX by 21.6% in the 4th quarter. Par Capital Management Inc. now owns 2,252,000 shares of the business services provider's stock valued at $335,503,000 after purchasing an additional 400,500 shares during the last quarter. Norges Bank purchased a new stake in shares of WEX in the 4th quarter valued at approximately $50,202,000. Finally, New South Capital Management Inc. increased its position in shares of WEX by 627.0% in the 4th quarter. New South Capital Management Inc. now owns 268,023 shares of the business services provider's stock valued at $39,930,000 after purchasing an additional 231,158 shares during the last quarter. 97.47% of the stock is owned by hedge funds and other 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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