Vestis (NYSE:VSTS) Shares Gap Down – Here’s What Happened

Vestis Corporation (NYSE:VSTS)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $6.89, but opened at $6.15. Vestis shares last traded at $6.4750, with a volume of 800,224 shares.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. JPMorgan Chase & Co. raised their price objective on shares of Vestis from $5.50 to $6.00 and gave the stock an “underweight” rating in a report on Wednesday, December 3rd. Robert W. Baird raised their price target on shares of Vestis from $5.00 to $6.50 and gave the stock a “neutral” rating in a research note on Tuesday, December 2nd. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Vestis in a report on Wednesday, October 8th. Finally, The Goldman Sachs Group downgraded Vestis from a “neutral” rating to a “sell” rating and dropped their price objective for the company from $6.30 to $5.30 in a research note on Thursday. One investment analyst has rated the stock with a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Strong Sell” and an average target price of $5.70.

Vestis Price Performance

The firm’s 50 day moving average price is $6.35 and its two-hundred day moving average price is $5.57. The company has a debt-to-equity ratio of 1.49, a current ratio of 2.08 and a quick ratio of 1.64. The stock has a market cap of $849.90 million, a PE ratio of -20.79 and a beta of 0.73.

Vestis (NYSE:VSTS) last announced its quarterly earnings results on Monday, December 1st. The company reported $0.03 EPS for the quarter, meeting analysts’ consensus estimates of $0.03. Vestis had a negative net margin of 1.47% and a positive return on equity of 2.62%. The company had revenue of $712.01 million for the quarter, compared to analysts’ expectations of $690.65 million. During the same period in the prior year, the company posted $0.11 EPS. Vestis’s revenue was up 4.1% compared to the same quarter last year. On average, research analysts expect that Vestis Corporation will post 0.7 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Keith A. Meister purchased 800,222 shares of Vestis stock in a transaction dated Tuesday, December 16th. The stock was bought at an average cost of $6.81 per share, for a total transaction of $5,449,511.82. Following the completion of the transaction, the director owned 19,604,121 shares in the company, valued at $133,504,064.01. This trade represents a 4.26% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director William Goetz bought 6,746 shares of the business’s stock in a transaction on Monday, December 8th. The stock was bought at an average price of $7.42 per share, with a total value of $50,055.32. Following the purchase, the director owned 29,877 shares in the company, valued at $221,687.34. This trade represents a 29.16% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders bought 1,205,810 shares of company stock valued at $8,138,302 over the last three months. Insiders own 13.60% of the company’s stock.

Hedge Funds Weigh In On Vestis

Several hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC lifted its stake in 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 purchasing an additional 4,502 shares in the last quarter. Osaic Holdings Inc. increased its holdings in shares of Vestis by 703.2% in the second quarter. Osaic Holdings Inc. now owns 5,743 shares of the company’s stock worth $33,000 after purchasing an additional 5,028 shares during the period. Simplicity Wealth LLC purchased a new stake in shares of Vestis in the third quarter worth $46,000. Sanders Morris Harris LLC bought a new stake in Vestis during the third quarter valued at $47,000. Finally, PNC Financial Services Group Inc. boosted its stake in Vestis by 331.4% during the second quarter. PNC Financial Services Group Inc. now owns 9,427 shares of the company’s stock valued at $54,000 after buying an additional 7,242 shares during the period. 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.