Vestis (NYSE:VSTS) Sets New 1-Year Low Following Weak Earnings

Vestis Co. (NYSE:VSTS)’s share price reached a new 52-week low during mid-day trading on Thursday following a weaker than expected earnings announcement. The company 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 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.09). The company had revenue of $705.37 million for the quarter, compared to the consensus estimate of $722.54 million. The business’s revenue for the quarter was up .9% compared to the same quarter last year.

Vestis Dividend Announcement

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

Analyst Ratings Changes

A number of equities research analysts recently weighed in on VSTS shares. Wolfe Research assumed coverage on Vestis in a research report on Thursday, January 11th. They set an “outperform” rating and a $24.00 price objective on the stock. Stifel Nicolaus reaffirmed a “hold” rating on shares of Vestis in a research note on Friday. Barclays cut their target price on shares of Vestis from $19.00 to $10.00 and set an “underweight” rating on the stock in a research report on Friday. Robert W. Baird decreased their price target on shares of Vestis from $24.00 to $13.00 and set an “outperform” rating for the company in a research report on Friday. Finally, JPMorgan Chase & Co. lowered shares of Vestis from an “overweight” rating to a “neutral” rating and cut their price target for the stock from $22.00 to $11.00 in a report on Friday. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and five have given a buy rating to the company. According to MarketBeat, Vestis presently has an average rating of “Hold” and an average target price of $19.33.

Insider Activity

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

Hedge Funds Weigh In On Vestis

A number of institutional investors and hedge funds have recently made changes to their positions in VSTS. Vanguard Group Inc. bought a new stake in Vestis in the 4th quarter valued at about $302,586,000. Capital International Investors acquired a new stake in Vestis in the fourth quarter valued at approximately $125,586,000. Channing Capital Management LLC bought a new stake in shares of Vestis during the fourth quarter valued at 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 position in shares of Vestis in the 4th quarter worth $48,292,000. Institutional investors own 97.40% of the company’s stock.

Vestis Price Performance

The firm’s 50-day moving average is $18.38 and its 200-day moving average 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.