Vista Outdoor Inc. (VSTO) Volatility Spurs A Quest For Clarity


Gates Capital Management, Inc. recently announced the acquisition of new stake in Vista Outdoor Inc. (NYSE:VSTO). The institutional investor has increased its shareholding in the Consumer Cyclical company by 6.33% to 5.64 million shares with purchase of 0.34 million shares. This fresh investment now brings its stake to 9.71% valued currently at $81.49 million. In addition, Dimensional Fund Advisors LP raised its holdings by 2088.0 to 4.33 million shares. And D. E. Shaw & Co. LP has lifted its position by 7.23% or 0.14 million shares – to 2.07 million shares.

With over 1.18 million Vista Outdoor Inc. (VSTO) shares trading Tuesday and a closing price of $16.35 on the day, the dollar volume was approximately $19.32 million. The shares have shown a positive weekly performance of 2.38% and its price on 07/28/20 gained nearly 3.61%. Currently, there are 57.95M common shares owned by the public and among those 56.86M shares have been available to trade.

Incidentally, analysts’ outlook for the Vista Outdoor Inc. stock is 2.50 for the next 12 months.

Insiders at the company have transacted a total of 40 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 24 of these insider trades were purchases, accounting for 654,364 shares. Insider sales of the common stock occurred on 16 occasions, with total insider shares sold totaling 38,446 shares.

The top 3 mutual fund holders in Vista Outdoor Inc. are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and iShares Russell 2000 ETF. iShares Core S&P Small Cap ETF owns 3.57 million shares of the company’s stock, all valued at over $51.65 million. Vanguard Total Stock Market Index sold 68296.0 shares to see its total holdings shrink to 1.59 million shares valued at over $23.0 million and representing 2.74% of the shares outstanding. iShares Russell 2000 ETF sold 30444.0 shares to bring its total holdings to over 1.2 million shares at a value of $17.29 million. iShares Russell 2000 ETF now owns shares totaling to 2.06% of the shares outstanding.

Shares of Vista Outdoor Inc. (NYSE: VSTO) opened at $15.81, up $0.03 from a prior closing price of $15.78. However, the script later closed the day at $16.35, up 3.61%. The company’s stock has a 5-day price change of 2.38% and 64.16% over the past three months. VSTO shares are trading 118.58% year to date (YTD), with the 12-month market performance up to 136.96% higher. It has a 12-month low price of $4.29 and touched a high of $16.31 over the same period. Currently, 1.18 million shares have been traded, compared to an average intraday trading volume of 1.54 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 9.28%, 30.84%, and 80.31% respectively.

Institutional ownership of Vista Outdoor Inc. (NYSE: VSTO) shares accounts for 93.80% of the company’s 57.95M shares outstanding. Mutual fund holders own 41.93%, while other institutional holders and individual stakeholders account for 50.82% and 3.09% respectively.

It has a market capitalization of $962.03M and a beta (3y monthly) value of 0.30. The earnings-per-share (ttm) stands at -$2.68. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.89% over the week and 5.73% over the month.

Analysts forecast that Vista Outdoor Inc. (VSTO) will achieve an EPS of $0 for the current quarter, $0.12 for the next quarter and $0.52 for 2022. The lowest estimate earnings-per-share for the quarter is -$0.03 while analysts give the company a high EPS estimate of $0.07. Comparatively, EPS for the current quarter was -$0.08 a year ago. Earnings per share for the fiscal year are expected to increase by 76.20%, and 13.94% over the next financial year. EPS should grow at an annualized rate of 25.00% over the next five years, compared to -32.90% over the past 5-year period.

Looking at the support for the VSTO, a number of firms have released research notes about the stock. B. Riley FBR stated their Neutral rating for the stock in a research note on July 08, 2020, with the firm’s price target at $16. Monness Crespi & Hardt coverage for the Vista Outdoor Inc. (VSTO) stock in a research note released on June 25, 2020 offered a Buy rating with a price target of $15. DA Davidson was of a view on October 11, 2019 that the stock is Neutral, while Lake Street gave the stock Buy rating on July 09, 2019, issuing a price target of $11. Monness Crespi & Hardt on their part issued Buy rating on May 10, 2019.


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