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

Vestis Corporation (NYSE:VSTS)’s stock price gapped up prior to trading 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 trading hands.

The company reported $0.10 EPS for the quarter, topping 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 business had revenue of $663.39 million for the quarter, compared to analyst estimates of $665.77 million. During the same quarter in the previous year, the firm posted $0.14 earnings per share. The company’s revenue for the quarter was down 3.0% on a year-over-year basis.

Analyst Ratings Changes

VSTS has been the subject of several recent research reports. Robert W. Baird lifted their price objective on Vestis from $5.00 to $6.50 and gave the stock a “neutral” rating in a report on Tuesday, December 2nd. JPMorgan Chase & Co. lifted their target price on shares of Vestis from $5.50 to $6.00 and gave the stock an “underweight” rating in a research note on Wednesday, December 3rd. Weiss Ratings restated a “sell (d)” rating on shares of Vestis in a research note on Wednesday, January 21st. Finally, The Goldman Sachs Group lowered shares of Vestis from a “neutral” rating to a “sell” rating and reduced their price objective 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 assigned a Sell rating to the stock. According to data from MarketBeat.com, Vestis has a consensus rating of “Strong Sell” and an average target price of $5.70.

Insider Activity

In other Vestis news, Director Keith A. Meister acquired 800,222 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were bought at an average price of $6.81 per share, for a total transaction of $5,449,511.82. Following the completion of the transaction, the director owned 19,604,121 shares of the company’s stock, valued at approximately $133,504,064.01. This represents a 4.26% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Douglas A. Pertz acquired 15,000 shares of the company’s stock in a transaction that occurred on Friday, December 19th. The shares were acquired at an average cost of $6.90 per share, with a total value of $103,500.00. Following the purchase, the director directly owned 322,010 shares of the company’s stock, valued at $2,221,869. This trade represents a 4.89% increase in their position. The SEC filing for this purchase provides additional information. In the last three months, insiders bought 1,205,810 shares of company stock worth $8,138,302. Company insiders own 15.70% of the company’s stock.

Hedge Funds Weigh In On Vestis

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Abacus Planning Group Inc. increased its holdings in shares of Vestis by 8.9% in the 3rd quarter. Abacus Planning Group Inc. now owns 28,058 shares of the company’s stock worth $127,000 after buying an additional 2,294 shares during the last quarter. Captrust Financial Advisors grew its position in Vestis by 15.6% in the second quarter. Captrust Financial Advisors now owns 20,599 shares of the company’s stock worth $118,000 after acquiring an additional 2,787 shares in the last quarter. Nisa Investment Advisors LLC increased its stake in Vestis by 147.3% in the fourth quarter. Nisa Investment Advisors LLC now owns 5,175 shares of the company’s stock valued at $35,000 after acquiring an additional 3,082 shares during the last quarter. Farther Finance Advisors LLC raised its position in Vestis by 176.1% during the fourth quarter. Farther Finance Advisors LLC now owns 5,193 shares of the company’s stock valued at $35,000 after purchasing an additional 3,312 shares in the last quarter. Finally, Mariner LLC lifted its stake in Vestis by 3.2% during the third quarter. Mariner LLC now owns 123,981 shares of the company’s stock worth $562,000 after purchasing an additional 3,798 shares during the last quarter. Hedge funds and other institutional investors own 97.40% of the company’s stock.

Vestis Price Performance

The company has a current ratio of 2.08, a quick ratio of 1.64 and a debt-to-equity ratio of 1.49. The stock has a market capitalization of $1.19 billion, a PE ratio of -29.19 and a beta of 0.73. The business has a fifty day moving average price of $6.80 and a 200-day moving average price of $5.66.

Vestis Company Profile

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.