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

Shares of UniFirst Co. (NYSE:UNF) gapped down prior to trading 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 changing hands.

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

Insider Activity

In related news, VP David Martin Katz sold 1,299 shares of the stock in a transaction on Tuesday, February 18th. The stock was sold at an average price of $210.95, for a total transaction 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. This trade represents a 16.75 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.86% of the company’s stock.

Hedge Funds Weigh In On UniFirst

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Barclays PLC raised its position in shares of UniFirst by 464.6% during the 3rd quarter. Barclays PLC now owns 41,220 shares of the textile maker’s stock worth $8,188,000 after purchasing an additional 33,919 shares during the last quarter. Salem Investment Counselors Inc. lifted its position in shares of UniFirst by 24.7% in the fourth quarter. Salem Investment Counselors Inc. now owns 11,519 shares of the textile maker’s stock valued at $1,974,000 after acquiring an additional 2,281 shares in the last quarter. Assenagon Asset Management S.A. acquired a new stake in shares of UniFirst during the fourth quarter valued at $255,000. Copeland Capital Management LLC lifted its holdings in UniFirst by 9.9% in the 4th quarter. Copeland Capital Management LLC now owns 365,047 shares of the textile maker’s stock valued at $62,456,000 after purchasing an additional 32,860 shares in the last quarter. Finally, KBC Group NV boosted its position in UniFirst by 74.1% during the fourth quarter. KBC Group NV now owns 740 shares of the textile maker’s stock worth $127,000 after acquiring an additional 315 shares during the last quarter. Institutional investors and hedge funds own 78.17% of the company’s stock.

UniFirst Trading Down 14.2 %

The stock has a market capitalization of $3.15 billion, a PE ratio of 21.67 and a beta of 0.89. The company’s 50 day simple moving average is $214.43 and its 200 day simple moving average is $199.07.

UniFirst (NYSE:UNF) last announced its earnings results on Wednesday, January 8th. The textile maker reported $2.31 earnings per share for the quarter, beating the consensus estimate of $2.22 by $0.09. The business had revenue of $604.91 million during the quarter, compared to the consensus estimate of $606.60 million. UniFirst had a net margin of 6.00% and a return on equity of 7.40%. The business’s quarterly revenue was up 1.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.26 earnings per share. As a group, analysts predict that UniFirst Co. will post 7.71 EPS for the current year.

UniFirst Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, March 28th. Investors of record on Friday, March 7th will be issued a $0.35 dividend. The ex-dividend date is Friday, March 7th. This represents a $1.40 annualized dividend and a yield of 0.83%. UniFirst’s dividend payout ratio is presently 17.90%.

About UniFirst

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.