Zacks Investment Research Lowers VSE (NASDAQ:VSEC) to Sell

Zacks Investment Research downgraded shares of VSE (NASDAQ:VSEC) from a hold rating to a sell rating in a research report released on Thursday morning, Zacks.com reports.

According to Zacks, “VSE Corporation is a diversified Federal Services company of choice for solving issues of global significance with integrity, agility, and value. The company serves as a centralized management and consolidating entity for the Company’s business operations. VSE is dedicated to making its clients successful by delivering talented people and innovative solutions for consulting and program management, logistics, equipment and vehicle/vessel refurbishment, engineering, information technology, energy consulting, and construction program management. VSE has three wholly-owned subsidiaries: Energetics Incorporated, Integrated Concepts and Research Corporation (ICRC), and G&B Solutions, Inc. “

A number of other research analysts have also recently weighed in on VSEC. Royal Bank of Canada lifted their target price on VSE from $65.00 to $70.00 and gave the company an outperform rating in a report on Friday, November 19th. lifted their target price on VSE from $62.00 to $72.00 and gave the company a buy rating in a report on Friday, November 12th. Finally, TheStreet upgraded VSE from a c rating to a b rating in a report on Thursday, October 28th. One investment analyst has rated the stock with a sell rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of Buy and a consensus target price of $67.25.

VSEC stock opened at $57.86 on Thursday. VSE has a 52-week low of $34.03 and a 52-week high of $65.42. The stock’s fifty day simple moving average is $59.44 and its 200-day simple moving average is $52.86. The company has a quick ratio of 0.87, a current ratio of 2.76 and a debt-to-equity ratio of 0.68. The stock has a market capitalization of $735.52 million, a price-to-earnings ratio of 82.66 and a beta of 1.49.

VSE (NASDAQ:VSEC) last issued its earnings results on Wednesday, October 27th. The construction company reported $0.76 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.73 by $0.03. VSE had a return on equity of 7.21% and a net margin of 1.13%. The firm had revenue of $200.58 million for the quarter, compared to analysts’ expectations of $186.15 million. During the same quarter last year, the firm earned $0.62 earnings per share. As a group, analysts anticipate that VSE will post 2.63 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 9th. Shareholders of record on Wednesday, January 26th will be given a $0.10 dividend. The ex-dividend date is Tuesday, January 25th. This is a positive change from VSE’s previous quarterly dividend of $0.09. This represents a $0.40 annualized dividend and a yield of 0.69%. VSE’s dividend payout ratio (DPR) is 51.43%.

A number of large investors have recently added to or reduced their stakes in VSEC. ArrowMark Colorado Holdings LLC increased its position in shares of VSE by 260.0% during the third quarter. ArrowMark Colorado Holdings LLC now owns 90,000 shares of the construction company’s stock worth $4,335,000 after acquiring an additional 65,000 shares during the last quarter. FMR LLC increased its position in shares of VSE by 3.5% during the second quarter. FMR LLC now owns 1,839,402 shares of the construction company’s stock worth $91,069,000 after acquiring an additional 61,973 shares during the last quarter. Invesco Ltd. increased its position in shares of VSE by 385.3% during the second quarter. Invesco Ltd. now owns 58,744 shares of the construction company’s stock worth $2,908,000 after acquiring an additional 46,640 shares during the last quarter. Wells Fargo & Company MN increased its position in shares of VSE by 208.3% during the second quarter. Wells Fargo & Company MN now owns 34,425 shares of the construction company’s stock worth $1,704,000 after acquiring an additional 23,258 shares during the last quarter. Finally, Harbert Fund Advisors Inc. increased its position in shares of VSE by 10.7% during the second quarter. Harbert Fund Advisors Inc. now owns 177,652 shares of the construction company’s stock worth $8,796,000 after acquiring an additional 17,118 shares during the last quarter. 79.34% of the stock is currently owned by institutional investors.

VSE Company Profile

VSE Corp. is a logistics and services company, which engages in the provision of engineering and technical support services. It operates through the following segments: Aviation, Fleet, and Federal & Defense. The Aviation segment provides international parts supply and distribution, supply chain solutions, and component and engine accessory maintenance, repair and overhaul services supporting global aftermarket commercial and business, and general aviation customers.

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