Vestis (NYSE:VSTS) Trading 9% Higher Following Insider Buying Activity

Vestis Co. (NYSE:VSTS)’s share price traded up 9% on Thursday following insider buying activity. The company traded as high as $11.70 and last traded at $11.51. 1,167,737 shares were traded during trading, a decline of 50% from the average session volume of 2,346,220 shares. The stock had previously closed at $10.56.

Specifically, major shareholder Corvex Management Lp purchased 1,828,009 shares of the firm’s stock in a transaction on Monday, May 6th. The shares were acquired at an average cost of $9.54 per share, with a total value of $17,439,205.86. Following the completion of the acquisition, the insider now directly owns 14,973,187 shares in the company, valued at $142,844,203.98. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. In other Vestis news, CEO Kim Scott purchased 15,000 shares of the firm’s stock in a transaction on Friday, February 9th. The shares were acquired at an average cost of $19.14 per share, with a total value of $287,100.00. Following the completion of the acquisition, the chief executive officer now directly owns 183,131 shares in the company, valued at $3,505,127.34. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, major shareholder Corvex Management Lp bought 1,828,009 shares of Vestis stock in a transaction dated Monday, May 6th. The stock was purchased at an average cost of $9.54 per share, for a total transaction of $17,439,205.86. Following the completion of the acquisition, the insider now directly owns 14,973,187 shares of the company’s stock, valued at approximately $142,844,203.98. The disclosure for this purchase can be found here. In the last three months, insiders have purchased 2,485,555 shares of company stock valued at $24,417,961.

Analyst Ratings Changes

Several brokerages have recently issued reports on VSTS. Robert W. Baird reduced their target price on Vestis from $24.00 to $13.00 and set an “outperform” rating on the stock in a report on Friday, May 3rd. Barclays reduced their target price on Vestis from $19.00 to $10.00 and set an “underweight” rating on the stock in a report on Friday, May 3rd. JPMorgan Chase & Co. lowered Vestis from an “overweight” rating to a “neutral” rating and dropped their price target for the stock from $22.00 to $11.00 in a research report on Friday, May 3rd. Redburn Atlantic lowered Vestis from a “buy” rating to a “neutral” rating and set a $13.40 price target for the company. in a research report on Tuesday. Finally, Stifel Nicolaus reiterated a “hold” rating on shares of Vestis in a research report on Friday, May 3rd. One analyst has rated the stock with a sell rating, four have issued a hold rating and four have issued a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $16.38.

Vestis Stock Up 8.0 %

The company has a 50-day simple moving average of $17.83 and a 200-day simple moving average of $18.60. The company has a debt-to-equity ratio of 1.69, a quick ratio of 2.16 and a current ratio of 2.51.

Vestis (NYSE:VSTS) last announced its earnings results on Thursday, May 2nd. The company reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.09). The business had revenue of $705.37 million during the quarter, compared to analyst estimates of $722.54 million. The firm’s revenue for the quarter was up .9% on a year-over-year basis. Analysts anticipate that Vestis Co. will post 1.03 EPS for the current fiscal year.

Vestis Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 4th. Shareholders of record on Friday, March 15th were given a dividend of $0.035 per share. The ex-dividend date was Thursday, March 14th. This represents a $0.14 annualized dividend and a dividend yield of 1.23%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of VSTS. Parkside Financial Bank & Trust purchased a new stake in shares of Vestis in the fourth quarter valued at approximately $25,000. Sound Income Strategies LLC purchased a new stake in shares of Vestis in the fourth quarter valued at approximately $25,000. CI Investments Inc. purchased a new stake in shares of Vestis in the third quarter valued at approximately $28,000. Daiwa Securities Group Inc. purchased a new stake in shares of Vestis in the fourth quarter valued at approximately $34,000. Finally, Wahed Invest LLC purchased a new stake in shares of Vestis in the fourth quarter valued at approximately $42,000. 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.