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

Vestis Corporation (NYSE:VSTS) 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 traded.

The company reported $0.10 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.04. Vestis had a positive return on equity of 2.62% and a negative net margin of 1.47%.The firm had revenue of $663.39 million during the quarter, compared to the consensus estimate of $665.77 million. During the same quarter in the previous year, the company posted $0.14 earnings per share. The business’s revenue was down 3.0% on a year-over-year basis.

Trending Headlines about Vestis

Here are the key news stories impacting Vestis this week:

• Positive Sentiment: Q1 adjusted EPS beat estimates — Vestis posted adjusted EPS of $0.10 vs. consensus ~$0.06, beating expectations and helping lift sentiment. Read More.
• Positive Sentiment: Cash flow and margins showing improvement — Management reported positive adjusted EBITDA ($70.4M) and operating cash flow ($37.7M), signaling cash generation that supports the turnaround narrative. Read More.
• Positive Sentiment: Company reaffirmed FY2026 outlook and emphasized early turnaround actions on the earnings call, which reassured investors about execution and near-term plan. Read More.
• Neutral Sentiment: High trading volume and stronger intraday buying — trading activity spiked, reflecting increased investor interest and momentum following the print and call. Read More.
• Neutral Sentiment: Earnings-call transparency — full transcript and slides are available, giving investors detail to gauge execution; useful but not a direct catalyst by itself. Read More.
• Negative Sentiment: Revenue slightly missed expectations and was down year-over-year — Q1 revenue of $663.4M was a touch below consensus and down ~3% vs. prior year, a reminder of ongoing topline pressure. Read More.
• Negative Sentiment: GAAP loss and negative net margin — company reported a GAAP net loss ($(0.05) per share) and a negative net margin, which keeps some investors cautious despite adjusted results. Read More.
• Negative Sentiment: Lower analyst target — at least one brokerage set a $5.70 target, signaling some analyst skepticism on near-term upside. Read More.

Analyst Ratings Changes

Several equities analysts have recently commented on VSTS shares. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Vestis in a research note on Wednesday, January 21st. The Goldman Sachs Group downgraded 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 report on Thursday, January 8th. Robert W. Baird upped their price target on Vestis from $5.00 to $6.50 and gave the company a “neutral” rating in a research report on Tuesday, December 2nd. Finally, JPMorgan Chase & Co. lifted their price objective on Vestis from $5.50 to $6.00 and gave the stock an “underweight” rating in a research report on Wednesday, December 3rd. One research analyst has rated the stock with a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Strong Sell” and an average price target of $5.70.

Insider Transactions at Vestis

In other news, Director Keith A. Meister purchased 209,842 shares of Vestis stock in a transaction that occurred on Wednesday, December 17th. The shares were bought at an average cost of $6.79 per share, with a total value of $1,424,827.18. Following the completion of the purchase, the director directly owned 19,813,963 shares in the company, valued at approximately $134,536,808.77. This trade represents a 1.07% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director William Goetz acquired 6,746 shares of the firm’s stock in a transaction on Monday, December 8th. The stock was purchased at an average price of $7.42 per share, with a total value of $50,055.32. Following the acquisition, the director owned 29,877 shares of the company’s stock, valued at $221,687.34. This represents a 29.16% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders acquired 1,205,810 shares of company stock valued at $8,138,302. Insiders own 15.70% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in VSTS. Goldman Sachs Group Inc. boosted its holdings in Vestis by 94.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,757,499 shares of the company’s stock worth $11,723,000 after acquiring an additional 852,885 shares in the last quarter. Norges Bank purchased a new position in shares of Vestis in the 4th quarter worth about $6,748,000. Eurizon Capital SGR S.p.A. bought a new position in Vestis in the 4th quarter worth about $36,000. Geode Capital Management LLC grew its position in Vestis by 7.8% during the 4th quarter. Geode Capital Management LLC now owns 2,713,396 shares of the company’s stock valued at $18,101,000 after purchasing an additional 195,382 shares during the last quarter. Finally, Bleakley Financial Group LLC increased its stake in Vestis by 37.5% during the 4th quarter. Bleakley Financial Group LLC now owns 72,715 shares of the company’s stock valued at $485,000 after purchasing an additional 19,850 shares in the last quarter. Hedge funds and other institutional investors own 97.40% of the company’s stock.

Vestis Price Performance

The company has a quick ratio of 1.64, a current ratio of 2.08 and a debt-to-equity ratio of 1.49. The firm has a market capitalization of $1.12 billion, a PE ratio of -27.42 and a beta of 0.73. The firm’s fifty day simple moving average is $6.84 and its 200-day simple moving average is $5.67.

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.