Allianz Asset Management GmbH Boosts Stock Holdings in Unifirst Corporation (NYSE:UNF)

Key Points

• Allianz Asset Management GmbH significantly increased its holdings in UniFirst Corporation by 142.5%, acquiring an additional 9,745 shares, bringing its total to 16,583 shares.
• UniFirst reported a quarterly earnings per share (EPS) of $2.13, exceeding analysts' estimates, but revenue was 1.2% higher than last year at $610.78 million, falling short of expectations.
• The company's Board of Directors has initiated a $100 million share buyback plan, indicating that management believes its stock is undervalued.

Allianz Asset Management GmbH raised its holdings in shares of Unifirst Corporation (NYSE:UNF - Free Report) by 142.5% during the first quarter, according to its most recent filing with the SEC. The firm owned 16,583 shares of the textile maker's stock after purchasing an additional 9,745 shares during the period. Allianz Asset Management GmbH owned 0.09% of Unifirst worth $2,885,000 at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in UNF. Norges Bank purchased a new position in Unifirst during the 4th quarter valued at about $31,133,000. Raymond James Financial Inc. purchased a new position in Unifirst during the 4th quarter valued at about $24,576,000. Ulysses Management LLC purchased a new position in Unifirst during the 4th quarter valued at about $8,318,000. Millennium Management LLC increased its position in Unifirst by 148.4% during the 4th quarter. Millennium Management LLC now owns 76,742 shares of the textile maker's stock valued at $13,130,000 after purchasing an additional 45,850 shares during the period. Finally, GAMMA Investing LLC increased its position in Unifirst by 27,715.5% during the 1st quarter. GAMMA Investing LLC now owns 39,498 shares of the textile maker's stock valued at $6,873,000 after purchasing an additional 39,356 shares during the period. Hedge funds and other institutional investors own 78.17% of the company's stock.

Unifirst Stock Performance

UNF stock traded down $1.44 during trading on Friday, reaching $169.59. The company had a trading volume of 142,703 shares, compared to its average volume of 127,382. The firm has a 50-day simple moving average of $180.86 and a 200-day simple moving average of $190.83. The company has a market cap of $3.14 billion, a price-to-earnings ratio of 20.83 and a beta of 0.85. Unifirst Corporation has a twelve month low of $156.34 and a twelve month high of $243.70.

Unifirst (NYSE:UNF - Get Free Report) last released its earnings results on Wednesday, July 2nd. The textile maker reported $2.13 EPS for the quarter, topping analysts' consensus estimates of $2.09 by $0.04. Unifirst had a net margin of 6.18% and a return on equity of 7.35%. The company had revenue of $610.78 million during the quarter, compared to analysts' expectations of $614.50 million. During the same period last year, the business earned $2.20 EPS. Unifirst's revenue for the quarter was up 1.2% on a year-over-year basis. Sell-side analysts expect that Unifirst Corporation will post 7.71 earnings per share for the current year.

Unifirst Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 0.8%. The ex-dividend date is Friday, September 5th. Unifirst's payout ratio is presently 17.20%.

Unifirst announced that its Board of Directors has approved a stock repurchase plan on Tuesday, April 8th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the textile maker to purchase up to 3.3% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of research analysts have commented on UNF shares. Barclays set a $152.00 target price on shares of Unifirst and gave the company an "underweight" rating in a research report on Monday, June 30th. Robert W. Baird set a $197.00 price objective on shares of Unifirst in a research report on Monday, June 30th. UBS Group cut their price objective on shares of Unifirst from $196.00 to $194.00 and set a "neutral" rating on the stock in a research report on Monday, June 30th. Finally, JPMorgan Chase & Co. began coverage on shares of Unifirst in a research report on Monday, July 14th. They issued an "underweight" rating and a $175.00 price objective on the stock. Two analysts have rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $179.50.

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.