Vestis (NYSE:VSTS) Stock Price Down 9.9% Following Weak Earnings

Vestis Corporation (NYSE:VSTS) shares dropped 9.9% during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $5.48 and last traded at $5.40. Approximately 1,182,847 shares changed hands during trading, a decline of 49% from the average daily volume of 2,334,906 shares. The stock had previously closed at $5.99.

The company reported $0.05 earnings per share for the quarter, hitting the consensus estimate of $0.05. Vestis had a positive return on equity of 3.75% and a negative net margin of 1.11%. The business had revenue of $673.80 million for the quarter, compared to analysts’ expectations of $673.65 million. During the same period in the previous year, the firm posted $0.16 EPS. The business’s revenue for the quarter was down 3.5% compared to the same quarter last year.

Analyst Ratings Changes

A number of research analysts recently commented on VSTS shares. Barclays decreased their price objective on Vestis from $10.00 to $5.00 and set an “underweight” rating on the stock in a report on Friday, May 9th. JPMorgan Chase & Co. reiterated an “underweight” rating and issued a $6.00 price objective (up from $5.00) on shares of Vestis in a report on Monday, July 14th. Two analysts have rated the stock with a sell rating and three have given a hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $9.25.

Insider Transactions at Vestis

In other news, Director Keith A. Meister bought 314,390 shares of the business’s stock in a transaction on Wednesday, May 28th. The shares were bought at an average price of $6.03 per share, with a total value of $1,895,771.70. Following the completion of the transaction, the director directly owned 18,803,899 shares in the company, valued at $113,387,510.97. This trade represents a 1.70% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders purchased a total of 800,675 shares of company stock valued at $4,777,432 over the last 90 days. 13.60% of the stock is owned by insiders.

Institutional Trading of Vestis

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. True Wealth Design LLC purchased a new stake in Vestis in the fourth quarter valued at approximately $29,000. Spire Wealth Management raised its position in Vestis by 168.2% in the first quarter. Spire Wealth Management now owns 5,110 shares of the company’s stock valued at $51,000 after purchasing an additional 3,205 shares during the period. Copeland Capital Management LLC raised its position in Vestis by 33.0% in the first quarter. Copeland Capital Management LLC now owns 5,428 shares of the company’s stock valued at $54,000 after purchasing an additional 1,346 shares during the period. KBC Group NV increased its position in shares of Vestis by 54.2% during the first quarter. KBC Group NV now owns 7,309 shares of the company’s stock worth $72,000 after acquiring an additional 2,568 shares during the period. Finally, Sterling Capital Management LLC increased its position in shares of Vestis by 45.9% during the fourth quarter. Sterling Capital Management LLC now owns 7,882 shares of the company’s stock worth $120,000 after acquiring an additional 2,479 shares during the period. Hedge funds and other institutional investors own 97.40% of the company’s stock.

Vestis Stock Down 5.8%

The business has a 50-day moving average price of $6.10 and a two-hundred day moving average price of $8.87. The company has a quick ratio of 1.41, a current ratio of 1.87 and a debt-to-equity ratio of 1.46. The firm has a market cap of $743.90 million, a PE ratio of -24.54 and a beta of 0.96.

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.