Atalan Capital Partners LP Invests $111.30 Million in US Foods Holding Corp. $USFD

Key Points

• Atalan Capital Partners acquired 1.09 million US Foods shares worth approximately $111.3 million, making USFD its sixth-largest portfolio holding and representing a 0.50% stake in the company.
• US Foods reported quarterly EPS of $1.44 and revenue of $10.53 billion, exceeding analyst expectations, while revenue increased 4.5% year over year.
• Analysts remain broadly positive, with 11 Buy ratings and four Holds; the stock has a “Moderate Buy” consensus and an average price target of $113.92, though two company insiders recently sold shares.

Atalan Capital Partners LP purchased a new stake in US Foods Holding Corp. (NYSE:USFD - Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 1,088,500 shares of the company's stock, valued at approximately $111,299,000. US Foods comprises about 6.8% of Atalan Capital Partners LP's portfolio, making the stock its 6th largest holding. Atalan Capital Partners LP owned 0.50% of US Foods at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in USFD. Measured Wealth Private Client Group LLC bought a new stake in US Foods in the third quarter worth $26,000. Keating Financial Advisory Services Inc. bought a new position in US Foods during the second quarter valued at $27,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of US Foods in the second quarter valued at $28,000. Nalls Sherbakoff Group LLC purchased a new stake in shares of US Foods in the fourth quarter valued at $36,000. Finally, Geneos Wealth Management Inc. lifted its holdings in shares of US Foods by 120.1% in the 2nd quarter. Geneos Wealth Management Inc. now owns 482 shares of the company's stock worth $37,000 after acquiring an additional 263 shares during the last quarter. Hedge funds and other institutional investors own 98.76% of the company's stock.

US Foods Stock Performance

USFD stock opened at $108.33 on Thursday. US Foods Holding Corp. has a 1-year low of $69.88 and a 1-year high of $111.42. The business has a 50-day moving average price of $101.89 and a 200 day moving average price of $94.25. The company has a market capitalization of $23.44 billion, a P/E ratio of 33.33, a PEG ratio of 1.38 and a beta of 0.81. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.14 and a quick ratio of 0.70.

US Foods (NYSE:USFD - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $1.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.08. The company had revenue of $10.53 billion for the quarter, compared to analysts' expectations of $10.46 billion. US Foods had a net margin of 1.81% and a return on equity of 20.53%. The firm's quarterly revenue was up 4.5% on a year-over-year basis. During the same period in the prior year, the business earned $1.19 EPS. US Foods has set its FY 2026 guidance at 4.696-4.935 EPS. As a group, equities research analysts forecast that US Foods Holding Corp. will post 4.41 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. UBS Group lifted their price target on shares of US Foods from $117.00 to $127.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Piper Sandler increased their price objective on shares of US Foods from $88.00 to $108.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 12th. TD Cowen raised their price objective on shares of US Foods from $116.00 to $119.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Wells Fargo & Company boosted their target price on US Foods from $110.00 to $125.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Finally, BMO Capital Markets restated an "outperform" rating and set a $120.00 target price on shares of US Foods in a research report on Friday, August 7th. Eleven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $113.92.

Insider Buying and Selling

In related news, insider William Spencer Hancock sold 21,754 shares of the business's stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $108.29, for a total value of $2,355,740.66. Following the completion of the transaction, the insider owned 101,144 shares of the company's stock, valued at $10,952,883.76. The trade was a 17.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Randy J. Taylor sold 11,630 shares of the company's stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $110.37, for a total value of $1,283,603.10. Following the sale, the insider owned 73,618 shares of the company's stock, valued at approximately $8,125,218.66. This represents a 13.64% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.74% of the stock is currently owned by company insiders.

About US Foods

US Foods NYSE: USFD is a leading foodservice distributor in the United States that supplies a wide range of products and services to professional food operators. The company provides fresh, frozen and dry food items as well as non-food restaurant supplies and kitchen equipment. Its customer base includes independent restaurants, multi-unit chains, healthcare and senior living facilities, hospitality businesses, government and educational institutions, and other foodservice operators.

Beyond commodity and branded food products, US Foods offers value-added solutions designed to help customers run their businesses.

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