BMO Capital Markets Forecasts Strong Price Appreciation for United Natural Foods (NYSE:UNFI) Stock

Key Points

• BMO Capital Markets has raised its price target for United Natural Foods (NYSE:UNFI) from $36.00 to $48.00, suggesting a potential upside of 27.69% from its current trading price.
• Despite a reported 5.6% year-over-year revenue decline, United Natural Foods exceeded earnings expectations with an EPS of ($0.11), beating consensus estimates of ($0.18).
• Institutional investors hold a significant 87.63% stake in United Natural Foods, indicating strong confidence from major financial players in the company's future.

United Natural Foods (NYSE:UNFI - Get Free Report) had its price target hoisted by BMO Capital Markets from $36.00 to $48.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. BMO Capital Markets' target price would indicate a potential upside of 27.69% from the stock's current price.

A number of other research analysts also recently commented on UNFI. Wells Fargo & Company raised shares of United Natural Foods from an "underweight" rating to an "equal weight" rating and increased their target price for the company from $25.00 to $26.00 in a research report on Wednesday, July 16th. Zacks Research upgraded shares of United Natural Foods from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 15th. UBS Group increased their price target on shares of United Natural Foods from $26.00 to $29.00 and gave the stock a "neutral" rating in a research note on Thursday, July 17th. Northcoast Research upgraded shares of United Natural Foods from a "neutral" rating to a "buy" rating and set a $36.00 price target for the company in a research note on Tuesday, July 22nd. Finally, Deutsche Bank Aktiengesellschaft set a $24.00 price target on shares of United Natural Foods and gave the stock a "hold" rating in a research note on Thursday, June 12th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $31.00.

United Natural Foods Trading Up 18.4%

NYSE UNFI opened at $37.59 on Wednesday. The company has a debt-to-equity ratio of 1.21, a current ratio of 1.41 and a quick ratio of 0.51. The firm's fifty day moving average price is $28.32 and its 200 day moving average price is $26.68. The company has a market capitalization of $2.28 billion, a price-to-earnings ratio of -32.69 and a beta of 0.90. United Natural Foods has a 12 month low of $18.81 and a 12 month high of $38.06.

United Natural Foods (NYSE:UNFI - Get Free Report) last posted its earnings results on Tuesday, October 7th. The company reported ($0.11) EPS for the quarter, beating analysts' consensus estimates of ($0.18) by $0.07. The firm had revenue of $7.70 billion for the quarter, compared to the consensus estimate of $7.61 billion. United Natural Foods had a negative net margin of 0.21% and a positive return on equity of 3.13%. The company's revenue was down 5.6% on a year-over-year basis. During the same period last year, the firm posted $0.01 EPS. On average, sell-side analysts expect that United Natural Foods will post 0.76 earnings per share for the current fiscal year.

Institutional Trading of United Natural Foods

Hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd lifted its stake in shares of United Natural Foods by 1,672.7% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 975 shares of the company's stock worth $27,000 after acquiring an additional 920 shares during the period. Farther Finance Advisors LLC lifted its stake in shares of United Natural Foods by 88.3% in the 2nd quarter. Farther Finance Advisors LLC now owns 1,077 shares of the company's stock worth $25,000 after acquiring an additional 505 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of United Natural Foods by 84.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,332 shares of the company's stock worth $31,000 after acquiring an additional 609 shares during the period. Picton Mahoney Asset Management acquired a new stake in shares of United Natural Foods in the 1st quarter worth $69,000. Finally, Skandinaviska Enskilda Banken AB publ acquired a new stake in shares of United Natural Foods in the first quarter valued at about $73,000. Institutional investors and hedge funds own 87.63% of the company's stock.

About United Natural Foods

United Natural Foods, Inc, together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates in two segments, Wholesale and Retail. The company offers grocery and general merchandise, produce, perishables and frozen foods, wellness and personal care items, and bulk and foodservice products.

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