UniFirst (NYSE:UNF) Stock Price Up 4.1% After Better-Than-Expected Earnings

UniFirst Co. (NYSE:UNF)’s share price was up 4.1% during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $214.62 and last traded at $213.00. Approximately 61,892 shares traded hands during mid-day trading, a decline of 78% from the average daily volume of 286,318 shares. The stock had previously closed at $204.69.

The textile maker reported $2.31 EPS for the quarter, beating analysts’ consensus estimates of $2.22 by $0.09. UniFirst had a return on equity of 7.47% and a net margin of 5.99%. The firm had revenue of $604.91 million during the quarter, compared to the consensus estimate of $606.60 million. During the same period in the prior year, the company earned $2.26 EPS. The company’s quarterly revenue was up 1.9% compared to the same quarter last year.

UniFirst Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 3rd. Investors of record on Friday, December 6th were issued a $0.35 dividend. The ex-dividend date of this dividend was Friday, December 6th. This is a positive change from UniFirst’s previous quarterly dividend of $0.33. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.65%. UniFirst’s dividend payout ratio (DPR) is 18.02%.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Robert W. Baird raised their target price on shares of UniFirst from $199.00 to $200.00 and gave the company a “neutral” rating in a report on Thursday, October 24th. UBS Group raised their target price on shares of UniFirst from $190.00 to $235.00 and gave the company a “neutral” rating in a report on Thursday. Finally, StockNews.com lowered shares of UniFirst from a “strong-buy” rating to a “buy” rating in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating to the company’s stock. According to MarketBeat.com, UniFirst presently has a consensus rating of “Hold” and an average price target of $197.50.

Insider Activity

In related news, CEO Steven S. Sintros sold 3,207 shares of UniFirst stock in a transaction dated Tuesday, November 19th. The stock was sold at an average price of $193.04, for a total value of $619,079.28. Following the completion of the sale, the chief executive officer now directly owns 22,571 shares in the company, valued at $4,357,105.84. The trade was a 12.44 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, major shareholder The Ronald D. Croatti Trust – 1 sold 9,500 shares of UniFirst stock in a transaction dated Wednesday, November 20th. The shares were sold at an average price of $190.97, for a total value of $1,814,215.00. Following the completion of the sale, the insider now owns 17,390 shares of the company’s stock, valued at $3,320,968.30. The trade was a 35.33 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 13,294 shares of company stock valued at $2,546,632. 0.86% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On UniFirst

A number of large investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC raised its stake in shares of UniFirst by 60.5% during the 3rd quarter. GAMMA Investing LLC now owns 183 shares of the textile maker’s stock worth $36,000 after acquiring an additional 69 shares in the last quarter. Quarry LP grew its holdings in UniFirst by 1,627.3% in the second quarter. Quarry LP now owns 190 shares of the textile maker’s stock worth $33,000 after purchasing an additional 179 shares during the last quarter. First Horizon Advisors Inc. grew its holdings in UniFirst by 16.5% in the third quarter. First Horizon Advisors Inc. now owns 367 shares of the textile maker’s stock worth $73,000 after purchasing an additional 52 shares during the last quarter. TD Private Client Wealth LLC increased its position in shares of UniFirst by 291.6% during the third quarter. TD Private Client Wealth LLC now owns 466 shares of the textile maker’s stock worth $93,000 after purchasing an additional 347 shares in the last quarter. Finally, Eastern Bank purchased a new stake in shares of UniFirst during the 3rd quarter valued at $109,000. 78.17% of the stock is currently owned by institutional investors.

UniFirst Trading Up 5.1 %

The stock has a 50-day moving average price of $190.78 and a two-hundred day moving average price of $186.71. The stock has a market cap of $4.00 billion, a price-to-earnings ratio of 27.69 and a beta of 0.87.

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.