Vestis (NYSE:VSTS) Trading Down 7.3% – Should You Sell?

by · The Markets Daily

Vestis Corporation (NYSE:VSTS – Get Free Report) dropped 7.3% during mid-day trading on Tuesday . The stock traded as low as $6.42 and last traded at $7.0050. Approximately 2,019,746 shares changed hands during trading, a decline of 14% from the average daily volume of 2,358,401 shares. The stock had previously closed at $7.56.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on VSTS shares. The Goldman Sachs Group lifted their price target on shares of Vestis from $5.50 to $6.30 and gave the company a “neutral” rating in a research note on Tuesday, December 2nd. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Vestis in a research report on Wednesday, October 8th. Robert W. Baird raised their price objective on Vestis from $5.00 to $6.50 and gave the company a “neutral” rating in a research note on Tuesday, December 2nd. Finally, JPMorgan Chase & Co. upped their target price on Vestis from $5.50 to $6.00 and gave the stock an “underweight” rating in a research report on Wednesday, December 3rd. Two equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, Vestis presently has an average rating of “Strong Sell” and an average target price of $5.95.

Get Our Latest Stock Report on Vestis

Vestis Price Performance

The stock has a market cap of $905.82 million, a P/E ratio of -22.15 and a beta of 0.76. The business has a 50 day simple moving average of $5.70 and a 200-day simple moving average of $5.47. The company has a debt-to-equity ratio of 1.49, a quick ratio of 1.64 and a current ratio of 2.08.

Vestis (NYSE:VSTS – Get Free Report) last issued its quarterly earnings results on Monday, December 1st. The company reported $0.03 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.03. The company had revenue of $712.01 million for the quarter, compared to the consensus estimate of $690.65 million. Vestis had a negative net margin of 1.47% and a positive return on equity of 2.62%. The firm’s quarterly revenue was up 4.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.11 EPS. On average, sell-side analysts forecast that Vestis Corporation will post 0.7 EPS for the current year.

Insider Activity at Vestis

In other news, Director William Goetz purchased 6,746 shares of the company’s stock in a transaction dated Monday, December 8th. The shares were purchased at an average price of $7.42 per share, with a total value of $50,055.32. Following the transaction, the director directly owned 29,877 shares of the company’s stock, valued at approximately $221,687.34. This represents a 29.16% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO James J. Barber acquired 82,367 shares of the stock in a transaction that occurred on Thursday, December 4th. The stock was purchased at an average price of $6.36 per share, for a total transaction of $523,854.12. Following the completion of the purchase, the chief executive officer directly owned 642,469 shares in the company, valued at $4,086,102.84. This trade represents a 14.71% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders purchased 170,746 shares of company stock worth $1,091,463. 13.60% of the stock is owned by company insiders.

Institutional Trading of Vestis

Several hedge funds and other institutional investors have recently modified their holdings of the business. CIBC Bancorp USA Inc. bought a new stake in Vestis during the 3rd quarter worth approximately $56,000. Jacobs Levy Equity Management Inc. boosted its holdings in Vestis by 1,265.8% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 1,960,150 shares of the company’s stock valued at $8,879,000 after purchasing an additional 1,816,633 shares during the period. Caxton Associates LLP purchased a new position in shares of Vestis during the 3rd quarter valued at $3,374,000. Verition Fund Management LLC increased its holdings in shares of Vestis by 12.5% in the third quarter. Verition Fund Management LLC now owns 431,644 shares of the company’s stock worth $1,955,000 after purchasing an additional 47,882 shares during the period. Finally, Quaker Capital Investments LLC purchased a new stake in shares of Vestis in the third quarter worth $3,484,000. Institutional investors own 97.40% of the company’s stock.

Vestis Company Profile

(Get Free Report)

Vestis Corporation provides uniform rentals and workplace supplies in the United States and Canada. Its products include uniform options, such as shirts, pants, outerwear, gowns, scrubs, high visibility garments, particulate-free garments, and flame-resistant garments, as well as shoes and accessories; and workplace supplies, including managed restroom supply services, first-aid supplies and safety products, floor mats, towels, and linens.

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