Vestis (NYSE:VSTS) Shares Gap Down on Disappointing Earnings

Vestis Corporation (NYSE:VSTS) gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $6.72, but opened at $6.16. Vestis shares last traded at $5.4890, with a volume of 688,731 shares traded.

The company reported ($0.10) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.03 by ($0.13). The company had revenue of $712.01 million during 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 2.61%. Vestis’s revenue for the quarter was up 4.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.11 earnings per share.

Analysts Set New Price Targets

Several research firms have commented on VSTS. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Vestis in a research note on Wednesday, October 8th. Wall Street Zen raised shares of Vestis from a “sell” rating to a “hold” rating in a research note on Saturday, August 9th. JPMorgan Chase & Co. cut their price target on shares of Vestis from $6.00 to $5.50 and set an “underweight” rating on the stock in a report on Thursday, August 7th. Robert W. Baird raised their price objective on shares of Vestis from $5.00 to $6.50 and gave the stock a “neutral” rating in a research note on Tuesday. Finally, The Goldman Sachs Group set a $6.30 target price on Vestis and gave the company a “neutral” rating in a research report on Tuesday. Two analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Strong Sell” and a consensus target price of $5.83.

Institutional Investors Weigh In On Vestis

A number of institutional investors have recently added to or reduced their stakes in VSTS. Alberta Investment Management Corp raised its stake in shares of Vestis by 57.7% during the 2nd quarter. Alberta Investment Management Corp now owns 9,692,000 shares of the company’s stock worth $55,535,000 after acquiring an additional 3,547,000 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its position in Vestis by 1,265.8% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 1,960,150 shares of the company’s stock worth $8,879,000 after buying an additional 1,816,633 shares during the last quarter. Jane Street Group LLC boosted its holdings in shares of Vestis by 700.5% in the 1st quarter. Jane Street Group LLC now owns 1,982,027 shares of the company’s stock valued at $19,622,000 after acquiring an additional 1,734,442 shares during the last quarter. AQR Capital Management LLC grew its position in Vestis by 49.4% during the 1st quarter. AQR Capital Management LLC now owns 4,669,670 shares of the company’s stock worth $45,950,000 after purchasing an additional 1,544,001 shares during the period. Finally, Medina Value Partners LLC purchased a new position in Vestis during the third quarter valued at approximately $6,469,000. Institutional investors own 97.40% of the company’s stock.

Vestis Stock Performance

The firm’s 50 day moving average is $5.25 and its 200-day moving average is $5.40. The company has a debt-to-equity ratio of 1.45, a quick ratio of 1.42 and a current ratio of 1.84. The stock has a market capitalization of $822.02 million, a price-to-earnings ratio of -20.11 and a beta of 0.78.

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.