VSE (NASDAQ:VSEC) Shares Gap Up Following Better-Than-Expected Earnings

Shares of VSE Co. (NASDAQ:VSEC) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $101.00, but opened at $110.62. VSE shares last traded at $113.51, with a volume of 28,903 shares.

The construction company reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.73 by $0.17. The firm had revenue of $299.02 million for the quarter, compared to analyst estimates of $289.97 million. VSE had a return on equity of 7.26% and a net margin of 1.36%.

VSE Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, February 6th. Stockholders of record on Thursday, January 23rd were paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.35%. The ex-dividend date of this dividend was Thursday, January 23rd. VSE’s dividend payout ratio (DPR) is currently 7.41%.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Truist Financial cut their price target on VSE from $133.00 to $129.00 and set a “buy” rating on the stock in a research note on Tuesday, January 14th. Royal Bank of Canada raised their price objective on VSE from $125.00 to $135.00 and gave the stock an “outperform” rating in a research note on Friday, December 6th. B. Riley raised their price objective on VSE from $120.00 to $132.00 and gave the stock a “buy” rating in a research note on Thursday, November 7th. Finally, StockNews.com raised VSE to a “sell” rating in a research report on Wednesday, February 12th. One equities research analyst has rated the stock with a sell rating and six have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $117.83.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in VSEC. T. Rowe Price Investment Management Inc. boosted its holdings in VSE by 52.6% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,026,164 shares of the construction company’s stock worth $192,689,000 after purchasing an additional 698,642 shares during the last quarter. Neuberger Berman Group LLC bought a new stake in VSE during the fourth quarter worth $35,834,000. Artisan Partners Limited Partnership bought a new stake in VSE during the fourth quarter worth $31,692,000. Ameriprise Financial Inc. raised its position in VSE by 63.4% during the fourth quarter. Ameriprise Financial Inc. now owns 716,168 shares of the construction company’s stock worth $68,115,000 after acquiring an additional 277,971 shares in the last quarter. Finally, Capital Research Global Investors raised its position in VSE by 16.8% during the fourth quarter. Capital Research Global Investors now owns 1,794,069 shares of the construction company’s stock worth $170,616,000 after acquiring an additional 258,674 shares in the last quarter. Institutional investors and hedge funds own 91.54% of the company’s stock.

VSE Price Performance

The company has a debt-to-equity ratio of 0.53, a current ratio of 3.69 and a quick ratio of 1.15. The company’s 50-day simple moving average is $99.69 and its 200-day simple moving average is $99.25. The stock has a market capitalization of $2.33 billion, a P/E ratio of 21.11 and a beta of 1.61.

About VSE

VSE Corporation operates as a diversified aftermarket products and services company in the United States. The company operates through two segments, Aviation and Fleet. The Aviation segment provides aftermarket parts supply and distribution; maintenance, repair, and overhaul services for components and engine accessories supporting commercial, business, and general aviation operators.