Vestis (NYSE:VSTS) Sets New 52-Week Low Following Weak Earnings

Vestis Co. (NYSE:VSTS)’s stock price reached a new 52-week low during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $11.85 and last traded at $12.00, with a volume of 3294384 shares traded. The stock had previously closed at $18.47.

The company reported $0.13 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.09). The business had revenue of $705.37 million for the quarter, compared to analysts’ expectations of $722.54 million. The company’s revenue was up .9% compared to the same quarter last year.

Vestis Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 4th. Stockholders of record on Friday, March 15th were paid a dividend of $0.035 per share. This represents a $0.14 annualized dividend and a dividend yield of 1.49%. The ex-dividend date was Thursday, March 14th.

Wall Street Analyst Weigh In

VSTS has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. lowered Vestis from an “overweight” rating to a “neutral” rating and decreased their price target for the company from $22.00 to $11.00 in a research report on Friday. The Goldman Sachs Group initiated coverage on Vestis in a research report on Thursday, January 25th. They set a “neutral” rating and a $22.00 price objective for the company. Stifel Nicolaus reaffirmed a “hold” rating on shares of Vestis in a research note on Friday. Wolfe Research assumed coverage on shares of Vestis in a research note on Thursday, January 11th. They issued an “outperform” rating and a $24.00 price objective on the stock. Finally, Barclays lowered their price target on shares of Vestis from $19.00 to $10.00 and set an “underweight” rating on the stock in a report on Friday. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Vestis currently has an average rating of “Hold” and a consensus target price of $19.33.

Insider Transactions at Vestis

In related news, CEO Kim Scott purchased 15,000 shares of the stock in a transaction on Friday, February 9th. The shares were bought at an average price of $19.14 per share, for a total transaction of $287,100.00. Following the completion of the acquisition, the chief executive officer now directly owns 183,131 shares in the company, valued at approximately $3,505,127.34. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. bought a new position in shares of Vestis in the fourth quarter worth about $302,586,000. Capital International Investors bought a new position in Vestis in the 4th quarter worth approximately $125,586,000. Channing Capital Management LLC acquired a new position in shares of Vestis during the fourth quarter worth approximately $72,529,000. Wellington Management Group LLP acquired a new position in shares of Vestis during the fourth quarter worth approximately $56,431,000. Finally, Victory Capital Management Inc. bought a new stake in shares of Vestis in the fourth quarter valued at approximately $48,292,000. Institutional investors and hedge funds own 97.40% of the company’s stock.

Vestis Stock Performance

The firm’s 50 day moving average price is $18.38 and its 200-day moving average price is $18.67. The company has a debt-to-equity ratio of 1.69, a current ratio of 2.51 and a quick ratio of 2.23.

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.