Vestis (NYSE:VSTS) Trading Down 8.3% – Should You Sell?

Shares of Vestis Corporation (NYSE:VSTS) traded down 8.3% during mid-day trading on Wednesday . The company traded as low as $11.35 and last traded at $11.0080. 784,725 shares were traded during trading, a decline of 54% from the average session volume of 1,719,581 shares. The stock had previously closed at $12.00.

Key Headlines Impacting Vestis

Here are the key news stories impacting Vestis this week:

• Positive Sentiment: Vestis beat Q2 earnings and revenue estimates, posting $0.16 EPS versus $0.09 expected and revenue of $659.4 million versus $655.3 million expected, which suggests the business is executing better than analysts anticipated.
• Positive Sentiment: The company also gave FY 2026 revenue guidance around $2.7 billion, implying management sees continued support for sales growth after the quarter. Article Title
• Positive Sentiment: Robert W. Baird raised its price target on Vestis from $10.00 to $14.00, indicating confidence in further upside even while keeping a neutral view. Article Title
• Positive Sentiment: Stifel Nicolaus also lifted its target from $8.50 to $11.00, which adds to the sense that analysts are becoming more constructive on the stock after the earnings release. Article Title
• Neutral Sentiment: Recent coverage and transcript-focused articles highlight the earnings call and presentation, but these are mainly informational rather than new business developments. Article Title

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. The Goldman Sachs Group reaffirmed a “sell” rating and set a $7.50 target price on shares of Vestis in a report on Wednesday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Vestis in a report on Monday, April 20th. William Blair raised Vestis from a “market perform” rating to an “outperform” rating in a report on Tuesday. Robert W. Baird lifted their target price on Vestis from $10.00 to $14.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Stifel Nicolaus lifted their target price on Vestis from $8.50 to $11.00 and gave the company a “hold” rating in a report on Wednesday. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $9.63.

Vestis Stock Performance

The company’s fifty day simple moving average is $8.54 and its 200 day simple moving average is $7.27. The company has a current ratio of 2.17, a quick ratio of 1.74 and a debt-to-equity ratio of 1.48. The stock has a market capitalization of $1.41 billion, a P/E ratio of -28.88 and a beta of 0.85.

Vestis (NYSE:VSTS) last released its quarterly earnings results on Tuesday, May 12th. The company reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.09 by $0.07. Vestis had a positive return on equity of 2.08% and a negative net margin of 1.75%.The firm had revenue of $659.44 million for the quarter, compared to analysts’ expectations of $655.32 million. During the same quarter last year, the firm posted ($0.05) EPS. The company’s revenue was down .9% compared to the same quarter last year. As a group, sell-side analysts forecast that Vestis Corporation will post 0.43 earnings per share for the current fiscal year.

Institutional Trading of Vestis

Several institutional investors and hedge funds have recently modified their holdings of the business. Nisa Investment Advisors LLC increased its holdings in shares of Vestis by 147.3% in the 4th quarter. Nisa Investment Advisors LLC now owns 5,175 shares of the company’s stock worth $35,000 after buying an additional 3,082 shares during the last quarter. Farther Finance Advisors LLC increased its holdings in shares of Vestis by 176.1% in the 4th quarter. Farther Finance Advisors LLC now owns 5,193 shares of the company’s stock worth $35,000 after buying an additional 3,312 shares during the last quarter. Eurizon Capital SGR S.p.A. bought a new position in shares of Vestis in the 4th quarter worth $36,000. EverSource Wealth Advisors LLC increased its holdings in shares of Vestis by 471.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,456 shares of the company’s stock worth $31,000 after buying an additional 4,502 shares during the last quarter. Finally, Osaic Holdings Inc. increased its holdings in shares of Vestis by 703.2% in the 2nd quarter. Osaic Holdings Inc. now owns 5,743 shares of the company’s stock worth $33,000 after buying an additional 5,028 shares during the last quarter. Hedge funds and other institutional investors own 97.40% of the company’s stock.

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. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries.