AlphaQuest LLC Decreases Stake in Unifirst Corporation $UNF

Key Points

• AlphaQuest LLC reduced its stake in Unifirst Corporation by 55.0% during the first quarter, now holding shares worth $362,000.
• Unifirst's recent earnings report showed a $2.13 earnings per share (EPS), exceeding analysts' expectations while the company anticipates 7.71 EPS for the current fiscal year.
• The company announced a quarterly dividend of $0.35 per share, representing a 0.8% dividend yield with a payout ratio of 17.20%.

AlphaQuest LLC trimmed its holdings in shares of Unifirst Corporation (NYSE:UNF - Free Report) by 55.0% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,079 shares of the textile maker's stock after selling 2,539 shares during the quarter. AlphaQuest LLC's holdings in Unifirst were worth $362,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. GAMMA Investing LLC raised its position in shares of Unifirst by 59.9% during the 1st quarter. GAMMA Investing LLC now owns 227 shares of the textile maker's stock valued at $39,000 after buying an additional 85 shares in the last quarter. Fifth Third Bancorp grew its holdings in Unifirst by 88.7% during the 1st quarter. Fifth Third Bancorp now owns 266 shares of the textile maker's stock valued at $46,000 after purchasing an additional 125 shares during the last quarter. Vestcor Inc bought a new position in Unifirst during the 1st quarter valued at about $87,000. Summit Securities Group LLC bought a new position in Unifirst during the 1st quarter valued at about $104,000. Finally, Orion Capital Management LLC bought a new position in Unifirst during the 4th quarter valued at about $104,000. 78.17% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have commented on UNF. Robert W. Baird set a $197.00 target price on shares of Unifirst in a research note on Monday, June 30th. Barclays set a $152.00 target price on shares of Unifirst and gave the stock an "underweight" rating in a research note on Monday, June 30th. JPMorgan Chase & Co. initiated coverage on shares of Unifirst in a research report on Monday, July 14th. They issued an "underweight" rating and a $175.00 price target for the company. Finally, UBS Group lowered their price target on shares of Unifirst from $196.00 to $194.00 and set a "neutral" rating for the company in a research report on Monday, June 30th. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Unifirst presently has a consensus rating of "Reduce" and a consensus target price of $179.50.

Unifirst Stock Performance

NYSE:UNF traded down $2.67 during midday trading on Tuesday, reaching $175.16. 6,280 shares of the stock traded hands, compared to its average volume of 128,643. Unifirst Corporation has a 12-month low of $156.34 and a 12-month high of $243.70. The business has a 50-day moving average of $175.90 and a two-hundred day moving average of $183.58. The stock has a market capitalization of $3.25 billion, a PE ratio of 21.54 and a beta of 0.86.

Unifirst (NYSE:UNF - Get Free Report) last posted its earnings results on Wednesday, July 2nd. The textile maker reported $2.13 EPS for the quarter, beating 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 quarter in the prior year, the company posted $2.20 earnings per share. Unifirst's revenue for the quarter was up 1.2% compared to the same quarter last year. Unifirst has set its FY 2025 guidance at 7.600-8.00 EPS. Research analysts anticipate that Unifirst Corporation will post 7.71 earnings per share for the current year.

Unifirst Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be issued a $0.35 dividend. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.8%. Unifirst's dividend payout ratio (DPR) is currently 17.20%.

Unifirst 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.