Vestis Corp (NYSE: VSTS) has seen a rise in its stock price by 0.12 in relation to its previous close of 16.31. However, the company has experienced a 21.77% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-25 that I maintain a hold rating for Vestis Corp (VSTS) due to the need for more evidence of successful strategy implementation and operating metrics improvement. 4Q24 earnings were disappointing, with a 4.4% y/y revenue decline, high decremental margins, and a sharp drop in adj EPS from $0.57 to $0.11. Positive signs include improved customer retention, new sales volume growth, and strategic initiatives to enhance customer service and capture high-margin incremental volume.
Is It Worth Investing in Vestis Corp (NYSE: VSTS) Right Now?
Vestis Corp (NYSE: VSTS) has a higher price-to-earnings ratio of 102.64x compared to its average ratio, The 36-month beta value for VSTS is at 1.67. Analysts have varying views on the stock, with 3 analysts rating it as a “buy,” 3 rating it as “overweight,” 6 as “hold,” and 1 as “sell.”
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The public float for VSTS is 130.55M, and currently, shorts hold a 3.22% of that float. The average trading volume for VSTS on November 27, 2024 was 2.04M shares.
VSTS’s Market Performance
VSTS’s stock has seen a 21.77% increase for the week, with a 15.57% rise in the past month and a 19.55% gain in the past quarter. The volatility ratio for the week is 6.84%, and the volatility levels for the past 30 days are at 3.80% for Vestis Corp The simple moving average for the last 20 days is 14.62% for VSTS stock, with a simple moving average of 10.19% for the last 200 days.
Analysts’ Opinion of VSTS
Many brokerage firms have already submitted their reports for VSTS stocks, with Robert W. Baird repeating the rating for VSTS by listing it as a “Neutral.” The predicted price for VSTS in the upcoming period, according to Robert W. Baird is $13 based on the research report published on August 08, 2024 of the current year 2024.
Redburn Atlantic gave a rating of “Neutral” to VSTS, setting the target price at $13.40 in the report published on May 07th of the current year.
VSTS Trading at 11.49% from the 50-Day Moving Average
After a stumble in the market that brought VSTS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -27.00% of loss for the given period.
Volatility was left at 3.80%, however, over the last 30 days, the volatility rate increased by 6.84%, as shares surge +15.82% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.65% upper at present.
During the last 5 trading sessions, VSTS rose by +21.77%, which changed the moving average for the period of 200-days by -15.87% in comparison to the 20-day moving average, which settled at $14.25. In addition, Vestis Corp saw -22.75% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at VSTS starting from Pertz Douglas A, who purchase 54,468 shares at the price of $11.99 back on May 24 ’24. After this action, Pertz Douglas A now owns 195,604 shares of Vestis Corp, valued at $653,055 using the latest closing price.
Pertz Douglas A, the Director of Vestis Corp, purchase 22,442 shares at $11.62 during a trade that took place back on May 28 ’24, which means that Pertz Douglas A is holding 218,046 shares at $260,706 based on the most recent closing price.
Stock Fundamentals for VSTS
Current profitability levels for the company are sitting at:
- 0.06 for the present operating margin
- 0.44 for the gross margin
The net margin for Vestis Corp stands at 0.01. The total capital return value is set at 0.06. Equity return is now at value 2.36, with 0.67 for asset returns.
Based on Vestis Corp (VSTS), the company’s capital structure generated 0.2 points at debt to capital in total, while cash flow to debt ratio is standing at 1.24. The debt to equity ratio resting at 0.26. The interest coverage ratio of the stock is 1.27.
Currently, EBITDA for the company is 299.37 million with net debt to EBITDA at 0.68. When we switch over and look at the enterprise to sales, we see a ratio of 0.84. The receivables turnover for the company is 15.83for trailing twelve months and the total asset turnover is 0.96. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.73.
Conclusion
In conclusion, Vestis Corp (VSTS) has had a mixed performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
