Vestis Corporation (NYSE:VSTS) Stock Now Rated “Reduce” by Sell-Side Brokerages

Shares of Vestis Corporation (NYSE:VSTS) have been given an average rating of “Reduce” by the eight ratings firms that are presently covering the stock, Marketbeat reports. Four research analysts have rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $12.66.

A number of equities analysts have recently commented on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Vestis in a report on Friday, August 7th. Robert W. Baird raised their target price on Vestis from $15.00 to $16.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 12th. JPMorgan Chase & Co. lifted their target price on Vestis from $11.00 to $13.00 and gave the stock an “underweight” rating in a report on Thursday, August 13th. The Goldman Sachs Group upped their price target on Vestis from $8.20 to $9.30 and gave the company a “sell” rating in a research report on Tuesday, August 11th. Finally, Stifel Nicolaus increased their price target on Vestis from $11.00 to $14.00 and gave the company a “hold” rating in a research note on Wednesday, August 12th.

Vestis Stock Performance

Vestis stock opened at $13.85 on Friday. The business has a 50 day moving average of $13.82 and a 200-day moving average of $11.99. The company has a market capitalization of $1.83 billion, a P/E ratio of -277.02 and a beta of 0.95. Vestis has a 1 year low of $4.09 and a 1 year high of $16.90. The company has a debt-to-equity ratio of 1.38, a current ratio of 2.17 and a quick ratio of 1.75.

Vestis (NYSE:VSTS) last posted its earnings results on Tuesday, August 11th. The company reported $0.18 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.08. Vestis had a negative net margin of 0.20% and a positive return on equity of 7.27%. The firm had revenue of $661.66 million for the quarter, compared to analyst estimates of $668.94 million. On average, equities research analysts predict that Vestis will post 0.62 earnings per share for the current year.

Insider Activity at Vestis

In related news, CEO James Barber bought 84,500 shares of Vestis stock in a transaction that occurred on Wednesday, September 2nd. The shares were acquired at an average cost of $12.37 per share, for a total transaction of $1,045,265.00. Following the completion of the acquisition, the chief executive officer directly owned 867,222 shares of the company’s stock, valued at approximately $10,727,536.14. The trade was a 10.80% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. 15.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in VSTS. Weiss Asset Management LP acquired a new position in Vestis in the first quarter valued at $584,000. Militia Capital Management LLC acquired a new stake in Vestis during the 1st quarter worth about $618,000. Healthcare of Ontario Pension Plan Trust Fund grew its holdings in Vestis by 69.1% during the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,072,081 shares of the company’s stock worth $8,427,000 after acquiring an additional 437,965 shares during the period. Bank of New York Mellon Corp acquired a new stake in Vestis during the 2nd quarter worth about $9,368,000. Finally, Corvex Management LP raised its position in shares of Vestis by 5.4% in the 4th quarter. Corvex Management LP now owns 19,813,963 shares of the company’s stock worth $132,159,000 after acquiring an additional 1,010,064 shares in the last quarter. Institutional investors own 97.40% of the company’s stock.

About Vestis

Vestis Corporation (NYSE: VSTS) is a provider of workplace apparel and facility services serving businesses across the United States and Canada. The company helps organizations manage employee uniforms, workwear and related workplace needs through rental, direct-sale and service programs.

Its offerings include uniforms and career apparel, protective clothing, industrial workwear, floor mats, towels, linens and restroom supplies. Vestis also provides services such as garment cleaning, repair, replacement and delivery, allowing customers to outsource the ongoing management of workplace apparel and facility products.

Vestis was established as an independent public company in 2023 following the separation of Aramark Uniform Services from Aramark.