Varex Imaging (NASDAQ:VREX) Shares Gap Down – Time to Sell?

Varex Imaging (NASDAQ:VREX) shares gapped down before the market opened on Wednesday . The stock had previously closed at $14.15, but opened at $12.69. Varex Imaging shares last traded at $13.3590, with a volume of 178,871 shares changing hands.

Key Headlines Impacting Varex Imaging

Here are the key news stories impacting Varex Imaging this week:

• Positive Sentiment: Q1 results beat consensus — Varex reported non‑GAAP EPS of $0.19 (versus ~$0.14 estimate) and revenue of $209.6M (slightly above estimates), showing quarter‑over‑quarter improvement in margins and profitability metrics. Business Wire — Q1 Results
• Positive Sentiment: Industrial end‑market strength flagged on the call — management highlighted robust industrial growth, which could diversify revenue drivers beyond medical imaging if sustained. Yahoo Finance — Call Highlights
• Neutral Sentiment: Updated guidance is a mixed signal — Q2 FY26 EPS guidance was set at $0.150–$0.250 (consensus ~$0.190), so the range includes the street estimate but is wide, leaving uncertainty around near‑term upside. Business Wire — Guidance
• Neutral Sentiment: Full earnings materials and call transcript are available for detailed line‑item review — useful for investors who want to dig into backlog, segment trends and margin drivers. Seeking Alpha — Call Transcript Seeking Alpha — Presentation
• Negative Sentiment: Q2 revenue guide slightly below consensus — management guided $210M–$215M, marginally under the ~$214.4M street view, which likely tempered optimism despite the beat. Business Wire — Revenue Guidance
• Negative Sentiment: Operating cash flow was negative for the quarter (cash outflow of ~$16M) and GAAP net income was minimal, highlighting near‑term cash generation concerns even as non‑GAAP profits improved. Business Wire — Cash Flow & GAAP Zacks — Key Metrics

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on VREX shares. B. Riley Financial reiterated a “buy” rating and issued a $16.00 price target on shares of Varex Imaging in a report on Wednesday, November 19th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Varex Imaging in a research report on Monday, December 29th. Jefferies Financial Group reissued a “hold” rating and set a $14.50 price target on shares of Varex Imaging in a research report on Monday, February 2nd. Oppenheimer dropped their target price on shares of Varex Imaging from $23.00 to $18.00 and set an “outperform” rating on the stock in a report on Wednesday, November 19th. Finally, Wall Street Zen upgraded shares of Varex Imaging from a “buy” rating to a “strong-buy” rating in a report on Saturday, November 22nd. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $16.17.

Varex Imaging Stock Performance

The firm’s 50 day moving average is $12.84 and its 200 day moving average is $11.74. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.83 and a current ratio of 3.43. The stock has a market cap of $567.14 million, a P/E ratio of -7.96 and a beta of 0.90.

Varex Imaging (NASDAQ:VREX) last released its quarterly earnings results on Tuesday, February 10th. The company reported $0.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.05. The business had revenue of $209.60 million for the quarter, compared to analyst estimates of $207.83 million. Varex Imaging had a negative net margin of 8.32% and a positive return on equity of 7.19%. Varex Imaging has set its Q2 2026 guidance at 0.150-0.250 EPS. Analysts anticipate that Varex Imaging will post 0.53 EPS for the current year.

Hedge Funds Weigh In On Varex Imaging

Several hedge funds and other institutional investors have recently modified their holdings of the stock. State of Alaska Department of Revenue purchased a new stake in Varex Imaging during the 3rd quarter worth approximately $27,000. Quarry LP acquired a new stake in shares of Varex Imaging during the third quarter worth $64,000. BNP Paribas Financial Markets lifted its stake in shares of Varex Imaging by 18.5% during the second quarter. BNP Paribas Financial Markets now owns 13,045 shares of the company’s stock worth $113,000 after buying an additional 2,036 shares during the period. Aquatic Capital Management LLC purchased a new stake in shares of Varex Imaging during the third quarter valued at $117,000. Finally, Cerity Partners LLC acquired a new position in shares of Varex Imaging in the 2nd quarter valued at $123,000.

Varex Imaging Company Profile

Varex Imaging Corporation is a global provider of X-ray imaging components and solutions for the medical, security and industrial markets. The company designs, develops and manufactures a broad range of products that convert X-ray energy into high-resolution digital images. Its portfolio includes X-ray tubes, flat panel detectors, digital sensors, specialty radiographic tubes and related software, all engineered to meet the demanding requirements of original equipment manufacturers (OEMs) in diagnostic imaging, computed tomography (CT), fluoroscopy, mammography, dental radiography and non-destructive testing applications.

The company’s medical imaging offerings support a wide spectrum of clinical modalities, from portable radiography systems to advanced CT scanners, enhancing image quality and dose efficiency for healthcare providers.