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

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

Key Stories 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

VSTS has been the subject of a number of research reports. William Blair upgraded Vestis from a “market perform” rating to an “outperform” rating in a report on Tuesday. Barclays reiterated an “underweight” rating on shares of Vestis in a report on Tuesday, February 17th. Stifel Nicolaus upped their price objective on Vestis from $8.50 to $11.00 and gave the stock a “hold” rating in a report on Wednesday. Weiss Ratings reiterated a “sell (d)” rating on shares of Vestis in a report on Monday, April 20th. Finally, The Goldman Sachs Group restated a “sell” rating and issued a $7.50 price objective on shares of Vestis in a report on Wednesday. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Vestis presently has a consensus rating of “Reduce” and a consensus target price of $9.63.

Vestis Stock Performance

The stock has a market cap of $1.41 billion, a PE ratio of -28.88 and a beta of 0.85. The company has a fifty day moving average price of $8.54 and a 200 day moving average price of $7.27. The company has a quick ratio of 1.74, a current ratio of 2.17 and a debt-to-equity ratio of 1.48.

Vestis (NYSE:VSTS) last released its quarterly earnings data on Tuesday, May 12th. The company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.09 by $0.07. The firm had revenue of $659.44 million for the quarter, compared to the consensus estimate of $655.32 million. Vestis had a positive return on equity of 2.08% and a negative net margin of 1.75%.The company’s quarterly revenue was down .9% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.05) earnings per share. Analysts expect that Vestis Corporation will post 0.43 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. EverSource Wealth Advisors LLC grew its holdings in shares of Vestis by 471.9% in the second 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 during the last quarter. Osaic Holdings Inc. grew 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 last quarter. Nisa Investment Advisors LLC grew its holdings in shares of Vestis by 147.3% in the fourth quarter. Nisa Investment Advisors LLC now owns 5,175 shares of the company’s stock worth $35,000 after purchasing an additional 3,082 shares during the last quarter. Farther Finance Advisors LLC grew its holdings in shares of Vestis by 176.1% in the fourth quarter. Farther Finance Advisors LLC now owns 5,193 shares of the company’s stock worth $35,000 after purchasing an additional 3,312 shares during the last quarter. Finally, Eurizon Capital SGR S.p.A. bought a new position in shares of Vestis in the fourth quarter worth approximately $36,000. 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.