Vestis Corporation (VSTS)

Vestis Corp.'s stock has been impacted by several events in the past six months. The company reported its Full-Year Fiscal 2025 earnings results on December 2, 2025, its Fiscal Third Quarter 2025 earnings results on August 6, 2025, its Fiscal Second Quarter 2025 earnings results on May 7, 2025, and its Fiscal First Quarter 2025 earnings results on January 31, 2025. Jim Barber was appointed as the incoming CEO in June 2025. A class-action lawsuit was filed against Vestis Corporation on June 9, 2025. Analyst sentiment for VSTS is generally negative, with an average rating of "Strong Sell" and an average price target of $5.70 as of January 8, 2026. Keith A. Meister, along with Corvex Management LP-advised funds, made significant open-market purchases of Vestis common stock in December 2025. The share price as of December 31, 2025, was $6.67, a decline of 56.41% from January 2, 2025.

Vestis Corp.'s products and services experience some demand seasonality, with lower demand from hospitality customers post-holiday impacting Q1 CY2025 revenue. The company's recurring revenue streams are generally driven by multi-year contracts for uniform rentals and workplace supplies, which are typically delivered on a weekly schedule.

Vestis Corporation is a leading provider of uniform rentals and workplace supplies in the United States and Canada, operating within the Industrials sector, specifically in the Rental & Leasing Services industry. The company offers a comprehensive suite of products and services, including uniform options and workplace supplies, serving diverse industries such as manufacturing, hospitality, retail, food processing, pharmaceuticals, healthcare, automotive, and cleanroom industries.

Vestis Corp. primarily operates in the United States and Canada, serving over 300,000 business locations across these North American markets, ranging from Fortune 500 companies to small, locally owned businesses.

Vestis Corp.'s brand reputation has faced challenges due to service quality issues, leading to increased credits issued to customers and deteriorated customer relationships, resulting in elevated attrition rates. The company also experienced a significant loss of credibility following its second-quarter financial report in 2025. Management is working on improvements, including investments in telematics technology, enhanced training, and process improvements, to enhance service quality and rebuild its reputation.

Vestis Corporation has a significant institutional ownership presence, with 483 institutional owners and shareholders holding a total of 157,709,377 shares. Major institutional owners include Corvex Management LP, BlackRock, Inc., Fmr Llc, Alberta Investment Management Corp, Vanguard Group Inc, iShares Core S&P Small-Cap ETF, Dimensional Fund Advisors Lp, and State Street Corp. Keith A. Meister is a major individual shareholder and insider, owning 19,846,152 shares, representing 15.05% of the company.