WEX (NYSE:WEX) Shares Gap Up – Should You Buy?

WEX Inc. (NYSE:WEX)’s stock price gapped up prior to trading on Friday . The stock had previously closed at $134.02, but opened at $139.37. WEX shares last traded at $140.4760, with a volume of 39,713 shares changing hands.

Analyst Upgrades and Downgrades

WEX has been the topic of a number of recent analyst reports. Mizuho dropped their target price on shares of WEX from $180.00 to $170.00 and set an “outperform” rating on the stock in a research report on Friday, February 6th. Wall Street Zen downgraded shares of WEX from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Raymond James Financial reaffirmed a “market perform” rating on shares of WEX in a research report on Friday, March 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of WEX in a research report on Monday, April 20th. Finally, JPMorgan Chase & Co. dropped their target price on shares of WEX from $175.00 to $155.00 and set a “neutral” rating on the stock in a research report on Friday, February 6th. Four research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $169.27.

WEX Trading Up 4.9%

The company has a debt-to-equity ratio of 2.83, a current ratio of 1.05 and a quick ratio of 1.05. The company has a market capitalization of $4.87 billion, a price-to-earnings ratio of 15.78, a price-to-earnings-growth ratio of 0.85 and a beta of 0.87. The business’s 50 day simple moving average is $156.38 and its 200 day simple moving average is $153.71.

WEX (NYSE:WEX) last posted its quarterly earnings data on Wednesday, April 22nd. The business services provider reported $4.15 EPS for the quarter, beating analysts’ consensus estimates of $3.92 by $0.23. The company had revenue of $673.80 million for the quarter, compared to analyst estimates of $660.96 million. WEX had a net margin of 11.50% and a return on equity of 42.66%. WEX’s quarterly revenue was up 5.8% on a year-over-year basis. During the same period in the previous year, the business posted $3.51 earnings per share. WEX has set its FY 2026 guidance at 18.950-19.550 EPS and its Q2 2026 guidance at 4.930-5.130 EPS. Research analysts anticipate that WEX Inc. will post 16.34 EPS for the current year.

WEX declared that its board has approved a share repurchase plan on Thursday, May 14th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the business services provider to repurchase up to 21.2% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In other news, insider Sara Trickett sold 1,815 shares of WEX stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $149.95, for a total value of $272,159.25. Following the sale, the insider owned 2,137 shares of the company’s stock, valued at $320,443.15. The trade was a 45.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Carlos Carriedo sold 1,575 shares of WEX stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $159.90, for a total transaction of $251,842.50. Following the completion of the sale, the chief operating officer directly owned 3,695 shares in the company, valued at approximately $590,830.50. The trade was a 29.89% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 14,447 shares of company stock valued at $2,283,602. Corporate insiders own 1.40% of the company’s stock.

Hedge Funds Weigh In On WEX

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Waverly Advisors LLC acquired a new position in WEX during the first quarter worth about $298,000. Entropy Technologies LP raised its position in WEX by 11.0% during the first quarter. Entropy Technologies LP now owns 6,654 shares of the business services provider’s stock worth $1,018,000 after acquiring an additional 661 shares during the last quarter. Renaissance Technologies LLC acquired a new position in WEX during the first quarter worth about $291,000. Public Employees Retirement System of Ohio raised its position in WEX by 17.1% during the first quarter. Public Employees Retirement System of Ohio now owns 19,579 shares of the business services provider’s stock worth $2,996,000 after acquiring an additional 2,865 shares during the last quarter. Finally, Compound Planning Inc. acquired a new position in shares of WEX in the first quarter valued at approximately $230,000. Institutional investors and hedge funds own 97.47% of the company’s stock.

WEX Company Profile

WEX Inc is a global financial technology company specializing in business payment solutions for fleet, travel, and corporate payments. The company delivers software-driven platforms and card-based services that help businesses automate payment processes, manage expenses and improve operational efficiency across a range of industries, including transportation, healthcare and government.

Founded in 1983 as Wright Express in Portland, Maine, the company began by offering fuel card services to trucking fleets.