UniFirst (NYSE:UNF) Shares Gap Down on Analyst Downgrade

UniFirst Co. (NYSE:UNF) shares gapped down before the market opened on Tuesday after UBS Group lowered their price target on the stock from $235.00 to $194.00. The stock had previously closed at $197.57, but opened at $171.50. UBS Group currently has a neutral rating on the stock. UniFirst shares last traded at $172.25, with a volume of 95,993 shares traded.

Separately, StockNews.com downgraded UniFirst from a “strong-buy” rating to a “buy” rating in a report on Wednesday, January 8th.

Insider Activity

In other UniFirst news, VP David Martin Katz sold 1,299 shares of the business’s stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $210.95, for a total value of $274,024.05. Following the completion of the sale, the vice president now directly owns 6,455 shares of the company’s stock, valued at $1,361,682.25. The trade was a 16.75 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 0.86% of the company’s stock.

Institutional Investors Weigh In On UniFirst

Several hedge funds have recently made changes to their positions in the stock. Norges Bank bought a new stake in shares of UniFirst during the fourth quarter valued at approximately $31,133,000. Raymond James Financial Inc. acquired a new stake in shares of UniFirst during the 4th quarter valued at about $24,576,000. Cerity Partners LLC bought a new stake in UniFirst in the third quarter valued at about $10,270,000. Ulysses Management LLC acquired a new position in UniFirst in the fourth quarter worth about $8,318,000. Finally, Millennium Management LLC lifted its stake in UniFirst by 148.4% during the fourth quarter. Millennium Management LLC now owns 76,742 shares of the textile maker’s stock worth $13,130,000 after purchasing an additional 45,850 shares during the period. Institutional investors own 78.17% of the company’s stock.

UniFirst Stock Performance

The company has a market capitalization of $3.15 billion, a P/E ratio of 21.67 and a beta of 0.89. The firm has a 50 day moving average price of $214.43 and a two-hundred day moving average price of $199.07.

UniFirst (NYSE:UNF) last announced its earnings results on Wednesday, January 8th. The textile maker reported $2.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.22 by $0.09. The business had revenue of $604.91 million during the quarter, compared to analysts’ expectations of $606.60 million. UniFirst had a net margin of 6.00% and a return on equity of 7.40%. The firm’s revenue for the quarter was up 1.9% on a year-over-year basis. During the same quarter last year, the company posted $2.26 EPS. On average, equities analysts expect that UniFirst Co. will post 7.71 earnings per share for the current year.

UniFirst Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 28th. Stockholders of record on Friday, March 7th will be paid a $0.35 dividend. The ex-dividend date of this dividend is Friday, March 7th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.83%. UniFirst’s dividend payout ratio (DPR) is presently 17.90%.

UniFirst Company Profile

UniFirst Corporation provides workplace uniforms and protective work wear clothing in the United States, Europe, and Canada. The company operates through U.S. and Canadian Rental and Cleaning, Manufacturing, Specialty Garments Rental and Cleaning, and First Aid segments. It designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, and aprons; and specialized protective wear, such as flame resistant and high visibility garments.