Parnassus Investments LLC Makes New Investment in US Foods Holding Corp. $USFD

Key Points

• Parnassus Investments LLC acquired 980,733 shares of US Foods Holding Corp., valued at approximately $64.2 million, making them approximately 0.43% shareholders.
• Wall Street analysts have raised price targets for US Foods, with Citigroup setting a target of $95.00 and UBS Group increasing theirs to $96.00, indicating positive market sentiment.
• In Q2, US Foods reported $1.19 EPS, surpassing expectations, and forecasts a FY 2025 EPS guidance of 3.764-3.874.

Parnassus Investments LLC bought a new stake in shares of US Foods Holding Corp. (NYSE:USFD - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 980,733 shares of the company's stock, valued at approximately $64,199,000. Parnassus Investments LLC owned about 0.43% of US Foods at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Boston Partners boosted its stake in US Foods by 29.1% during the 1st quarter. Boston Partners now owns 16,457,351 shares of the company's stock valued at $1,076,225,000 after purchasing an additional 3,713,345 shares during the period. Burgundy Asset Management Ltd. bought a new stake in shares of US Foods during the first quarter valued at approximately $110,245,000. Jupiter Asset Management Ltd. acquired a new position in shares of US Foods during the first quarter worth approximately $91,087,000. Invesco Ltd. grew its holdings in US Foods by 21.8% in the 1st quarter. Invesco Ltd. now owns 7,546,048 shares of the company's stock worth $493,964,000 after buying an additional 1,350,034 shares in the last quarter. Finally, Primecap Management Co. CA increased its position in US Foods by 194.6% in the 1st quarter. Primecap Management Co. CA now owns 1,941,400 shares of the company's stock valued at $127,084,000 after acquiring an additional 1,282,379 shares during the period. 98.76% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

USFD has been the topic of a number of recent analyst reports. Piper Sandler lifted their price objective on shares of US Foods from $77.00 to $85.00 and gave the company an "overweight" rating in a research note on Tuesday. Citigroup initiated coverage on shares of US Foods in a research note on Thursday, May 22nd. They issued a "buy" rating and a $95.00 price target for the company. JPMorgan Chase & Co. increased their price objective on shares of US Foods from $82.00 to $85.00 and gave the company a "neutral" rating in a report on Wednesday, June 25th. Wells Fargo & Company reissued an "overweight" rating and set a $87.00 target price (up previously from $80.00) on shares of US Foods in a report on Friday, August 8th. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $89.00 price target (up from $84.00) on shares of US Foods in a research note on Monday, July 14th. Two analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Buy" and a consensus price target of $81.27.

US Foods Stock Down 0.2%

Shares of US Foods stock traded down $0.19 during midday trading on Tuesday, hitting $77.41. The company's stock had a trading volume of 1,812,247 shares, compared to its average volume of 2,228,520. US Foods Holding Corp. has a 1-year low of $56.47 and a 1-year high of $85.11. The company has a quick ratio of 0.73, a current ratio of 1.17 and a debt-to-equity ratio of 1.02. The firm has a market capitalization of $17.43 billion, a P/E ratio of 33.08, a PEG ratio of 1.09 and a beta of 1.39. The stock has a 50-day simple moving average of $79.85 and a 200-day simple moving average of $73.13.

US Foods (NYSE:USFD - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $1.19 EPS for the quarter, topping the consensus estimate of $1.14 by $0.05. US Foods had a net margin of 1.43% and a return on equity of 16.86%. The business had revenue of $10.08 billion during the quarter, compared to analysts' expectations of $10.17 billion. During the same period last year, the company posted $0.93 earnings per share. The firm's quarterly revenue was up 3.8% compared to the same quarter last year. US Foods has set its FY 2025 guidance at 3.764-3.874 EPS. As a group, sell-side analysts expect that US Foods Holding Corp. will post 3.59 earnings per share for the current year.

Insiders Place Their Bets

In other US Foods news, EVP Dirk J. Locascio sold 7,500 shares of US Foods stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $80.00, for a total value of $600,000.00. Following the completion of the sale, the executive vice president directly owned 115,077 shares in the company, valued at $9,206,160. The trade was a 6.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.60% of the company's stock.

US Foods Profile

US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations.