WEX (NYSE:WEX) Trading Up 5.6% on Strong Earnings

Key Points

• WEX shares rose 5.6% after the company reported stronger-than-expected quarterly results, with EPS of $5.35 beating the $5.08 consensus and revenue of $753.5 million topping estimates.
• Management raised guidance for both Q3 2026 and full-year 2026, signaling confidence in continued earnings growth and helping support the stock's move higher.
• The company also announced a $1 billion stock repurchase program, which authorizes buybacks of up to 21.2% of outstanding shares and may indicate management believes the stock is undervalued.

WEX Inc. (NYSE:WEX - Get Free Report)'s share price was up 5.6% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $164.94 and last traded at $164.4710. Approximately 236,169 shares were traded during mid-day trading, a decline of 56% from the average session volume of 538,536 shares. The stock had previously closed at $155.68.

The business services provider reported $5.35 earnings per share for the quarter, topping the consensus estimate of $5.08 by $0.27. WEX had a return on equity of 42.66% and a net margin of 11.50%.The company had revenue of $753.50 million for the quarter, compared to analysts' expectations of $740.72 million. During the same period in the previous year, the firm posted $3.95 earnings per share. The firm's revenue for the quarter was up 14.2% on a year-over-year basis. WEX has set its Q3 2026 guidance at 5.450-5.650 EPS and its FY 2026 guidance at 19.680-20.080 EPS.

WEX declared that its Board of Directors has initiated a stock repurchase program on Thursday, May 14th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the business services provider to repurchase up to 21.2% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

Key WEX News

Here are the key news stories impacting WEX this week:

• Positive Sentiment: WEX beat Q2 expectations on both earnings and revenue, with EPS of $5.35 versus the $5.08 consensus and revenue of $753.5 million versus $740.7 million expected, signaling better-than-expected operating performance. WEX Inc. Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised guidance for both Q3 2026 and full-year 2026, with EPS outlook above Wall Street estimates, which is likely supporting the stock. WEX beats expectations on Q2 results, raises full-year outlook
• Positive Sentiment: Profitability improved sharply year over year, including a 14.2% revenue increase, higher gross profit, and strong EPS growth, reinforcing the view that WEX’s core businesses are trending better. WEX Inc. (WEX) Releases Q2 2026 Earnings: Revenue Growth and Profitability Improve
• Neutral Sentiment: One analyst commentary after the results stayed at Hold, describing earnings quality and segment trends as mixed, which may temper upside enthusiasm. WEX: Mixed Earnings Quality and Uneven Segment Trends Lead Jeffrey to Prefer Corpay, Maintain Hold Rating

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on WEX shares. Evercore upgraded shares of WEX to an "outperform" rating in a research report on Tuesday. Loop Capital started coverage on shares of WEX in a research report on Monday, April 27th. They issued a "buy" rating and a $195.00 price objective for the company. Morgan Stanley raised their price objective on WEX from $161.00 to $172.00 and gave the company an "equal weight" rating in a report on Tuesday. Wall Street Zen cut WEX from a "buy" rating to a "hold" rating in a report on Sunday, May 24th. Finally, 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. Five equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, WEX has an average rating of "Hold" and an average price target of $173.70.

Insider Transactions at WEX

In other news, Director James R. Groch bought 1,500 shares of WEX stock in a transaction dated Monday, May 18th. The stock was acquired at an average cost of $142.95 per share, with a total value of $214,425.00. Following the acquisition, 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 acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Robert Joseph Deshaies sold 2,000 shares of the firm's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $148.40, for a total value of $296,800.00. Following the transaction, the chief operating officer owned 20,288 shares in the company, valued at $3,010,739.20. This represents a 8.97% decrease in their position. 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. 1.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On WEX

A number of large investors have recently added to or reduced their stakes in WEX. Los Angeles Capital Management LLC acquired a new stake in shares of WEX during the 4th quarter worth about $25,000. Caitong International Asset Management Co. Ltd lifted its stake in shares of WEX by 368.1% during the 3rd 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 during the period. First Horizon Corp grew its position in shares of WEX by 65.7% in the fourth quarter. First Horizon Corp now owns 237 shares of the business services provider's stock valued at $35,000 after purchasing an additional 94 shares during the period. Root Financial Partners LLC increased its stake in WEX by 255.0% in the first quarter. Root Financial Partners LLC now owns 355 shares of the business services provider's stock valued at $54,000 after purchasing an additional 255 shares during the last quarter. Finally, IFP Advisors Inc boosted its stake in WEX by 225.4% in the 4th quarter. IFP Advisors Inc now owns 371 shares of the business services provider's stock worth $55,000 after buying an additional 257 shares during the last quarter. 97.47% of the stock is owned by institutional investors and hedge funds.

WEX Stock Up 5.9%

The firm has a fifty day simple moving average of $144.92 and a 200 day simple moving average of $152.41. 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 market cap of $5.72 billion, a PE ratio of 18.45, a PEG ratio of 0.99 and a beta of 0.85.

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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