VSE (NASDAQ:VSEC) Reaches New 1-Year Low – What’s Next?

VSE Corporation (NASDAQ:VSEC) hit a new 52-week low during trading on Wednesday. The company traded as low as $151.40 and last traded at $156.52, with a volume of 533,741 shares trading hands. The stock had previously closed at $158.08.

Wall Street Analysts Forecast Growth

VSEC has been the subject of several recent research reports. Deutsche Bank Aktiengesellschaft lifted their price objective on VSE from $280.00 to $290.00 and gave the stock a “buy” rating in a report on Tuesday, August 11th. Zacks Research raised shares of VSE from a “hold” rating to a “strong-buy” rating in a report on Monday, October 5th. Royal Bank Of Canada increased their target price on shares of VSE from $240.00 to $265.00 and gave the stock an “outperform” rating in a research report on Friday, August 7th. Jefferies Financial Group reiterated a “buy” rating and issued a $275.00 target price on shares of VSE in a research note on Sunday, August 9th. Finally, Morgan Stanley reduced their target price on shares of VSE from $245.00 to $215.00 and set an “equal weight” rating for the company in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, VSE currently has an average rating of “Moderate Buy” and a consensus price target of $258.12.

VSE Price Performance

The business’s fifty day simple moving average is $191.58 and its 200-day simple moving average is $196.04. The company has a current ratio of 3.77, a quick ratio of 1.30 and a debt-to-equity ratio of 0.31. The firm has a market cap of $4.39 billion, a P/E ratio of 50.17, a PEG ratio of 0.65 and a beta of 1.27.

VSE (NASDAQ:VSEC) last posted its earnings results on Wednesday, August 5th. The construction company reported $1.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.93 by $0.82. VSE had a return on equity of 6.71% and a net margin of 6.17%. The firm had revenue of $449.14 million for the quarter, compared to the consensus estimate of $425.03 million. During the same quarter in the prior year, the business posted $0.97 earnings per share. The business’s quarterly revenue was up 65.0% on a year-over-year basis. As a group, analysts forecast that VSE Corporation will post 6.75 EPS for the current fiscal year.

VSE Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 29th. Investors of record on Thursday, October 15th will be paid a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date is Thursday, October 15th. VSE’s payout ratio is presently 12.82%.

Insider Transactions at VSE

In related news, CEO John Cuomo sold 1,566 shares of the stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $187.49, for a total transaction of $293,609.34. Following the sale, the chief executive officer owned 167,971 shares of the company’s stock, valued at approximately $31,492,882.79. This represents a 0.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 1.80% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Allworth Financial LP increased its position in shares of VSE by 158.0% during the second quarter. Allworth Financial LP now owns 129 shares of the construction company’s stock valued at $29,000 after buying an additional 79 shares during the period. Farther Finance Advisors LLC boosted its position in shares of VSE by 5.4% in the third quarter. Farther Finance Advisors LLC now owns 1,764 shares of the construction company’s stock valued at $291,000 after acquiring an additional 90 shares during the period. Public Employees Retirement System of Ohio bought a new position in shares of VSE in the second quarter valued at approximately $25,000. GAMMA Investing LLC grew its stake in VSE by 89.0% during the second quarter. GAMMA Investing LLC now owns 276 shares of the construction company’s stock valued at $63,000 after acquiring an additional 130 shares in the last quarter. Finally, Transamerica Financial Advisors LLC purchased a new position in VSE during the second quarter valued at approximately $32,000. Hedge funds and other institutional investors own 91.54% of the company’s stock.

About VSE

VSE Corporation is a diversified provider of aftermarket distribution, maintenance, repair, overhaul, engineering, logistics and other sustainment services for government and commercial customers. The company supports complex assets and supply chains, with activities spanning aviation, defense, transportation and fleet markets.

Through its aviation businesses, VSE distributes aircraft parts and provides maintenance, repair and overhaul services for commercial, general aviation, business and government aircraft.