Vestis (NYSE:VSTS) Shares Gap Up Following Earnings Beat

Vestis Corporation (NYSE:VSTS)’s stock price gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $7.32, but opened at $8.99. Vestis shares last traded at $9.0870, with a volume of 1,508,131 shares changing hands.

The company reported $0.10 EPS for the quarter, beating the consensus estimate of $0.06 by $0.04. Vestis had a negative net margin of 1.47% and a positive return on equity of 2.62%. The firm had revenue of $663.39 million for the quarter, compared to analyst estimates of $665.77 million. During the same period last year, the firm earned $0.14 EPS. The business’s quarterly revenue was down 3.0% compared to the same quarter last year.

Analyst Upgrades and Downgrades

VSTS has been the topic of a number of research analyst reports. JPMorgan Chase & Co. raised their target price on Vestis from $5.50 to $6.00 and gave the company an “underweight” rating in a report on Wednesday, December 3rd. 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. Weiss Ratings reissued a “sell (d)” rating on shares of Vestis in a research note on Wednesday, January 21st. Finally, The Goldman Sachs Group downgraded shares of Vestis from a “neutral” rating to a “sell” rating and reduced their price target for the company from $6.30 to $5.30 in a research note on Thursday, January 8th. One analyst has rated the stock with a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Vestis currently has a consensus rating of “Strong Sell” and a consensus target price of $5.70.

Insider Buying and Selling at Vestis

In related news, Director Douglas A. Pertz acquired 15,000 shares of the firm’s stock in a transaction that occurred on Friday, December 19th. The stock was acquired at an average cost of $6.90 per share, for a total transaction of $103,500.00. Following the completion of the acquisition, the director directly owned 322,010 shares of the company’s stock, valued at approximately $2,221,869. This trade represents a 4.89% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director William Goetz purchased 6,746 shares of Vestis stock in a transaction on Monday, December 8th. The stock was bought at an average price of $7.42 per share, for a total transaction of $50,055.32. Following the transaction, the director directly owned 29,877 shares in the company, valued at approximately $221,687.34. The trade was a 29.16% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 1,205,810 shares of company stock worth $8,138,302 over the last ninety days. Insiders own 15.70% of the company’s stock.

Institutional Trading of Vestis

Several institutional investors and hedge funds have recently modified their holdings of the stock. EverSource Wealth Advisors LLC boosted its holdings in Vestis by 471.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,456 shares of the company’s stock worth $31,000 after acquiring an additional 4,502 shares during the last quarter. Osaic Holdings Inc. lifted its position in shares of Vestis by 703.2% during the second quarter. Osaic Holdings Inc. now owns 5,743 shares of the company’s stock valued at $33,000 after purchasing an additional 5,028 shares in the last quarter. Nisa Investment Advisors LLC grew its position in Vestis by 147.3% in the 4th quarter. Nisa Investment Advisors LLC now owns 5,175 shares of the company’s stock worth $35,000 after purchasing an additional 3,082 shares in the last quarter. Farther Finance Advisors LLC grew its position in Vestis by 176.1% in the 4th quarter. Farther Finance Advisors LLC now owns 5,193 shares of the company’s stock worth $35,000 after purchasing an additional 3,312 shares in the last quarter. Finally, Eurizon Capital SGR S.p.A. purchased a new stake in Vestis in the 4th quarter valued at about $36,000. 97.40% of the stock is owned by hedge funds and other institutional investors.

Vestis Stock Performance

The company’s 50-day simple moving average is $6.80 and its 200 day simple moving average is $5.66. The stock has a market cap of $1.19 billion, a P/E ratio of -29.19 and a beta of 0.73. The company has a current ratio of 2.08, a quick ratio of 1.64 and a debt-to-equity ratio of 1.49.

About Vestis

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. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries.