BlackRock Inc. Makes New $580.01 Million Investment in UniFirst Corporation $UNF

Key Points

• BlackRock acquired 2.19 million UniFirst shares worth approximately $580 million during the second quarter, giving it a 12.13% stake. Institutional investors collectively own 78.17% of the company.
• UniFirst reported quarterly revenue of $634.4 million, up 3.9% year over year and above estimates, but earnings per share of $1.09 missed the $1.93 consensus forecast.
• The stock opened at $290.45, near its 52-week high, while analysts maintained a consensus “Hold” rating with an average price target of $246.67. The company also declared a quarterly dividend of $0.365 per share.

BlackRock Inc. bought a new stake in UniFirst Corporation (NYSE:UNF - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 2,193,180 shares of the textile maker's stock, valued at approximately $580,008,000. BlackRock Inc. owned about 12.13% of UniFirst as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Geneos Wealth Management Inc. raised its holdings in shares of UniFirst by 474.1% in the 1st quarter. Geneos Wealth Management Inc. now owns 155 shares of the textile maker's stock worth $27,000 after purchasing an additional 128 shares during the period. Modus Advisors LLC purchased a new position in UniFirst in the fourth quarter valued at approximately $28,000. EverSource Wealth Advisors LLC grew its holdings in UniFirst by 378.1% during the second quarter. EverSource Wealth Advisors LLC now owns 153 shares of the textile maker's stock valued at $29,000 after purchasing an additional 121 shares during the period. Danske Bank A S bought a new position in UniFirst during the third quarter valued at $33,000. Finally, Brown Brothers Harriman & Co. increased its position in UniFirst by 1,244.0% in the third quarter. Brown Brothers Harriman & Co. now owns 336 shares of the textile maker's stock worth $56,000 after buying an additional 311 shares during the last quarter. 78.17% of the stock is owned by institutional investors.

UniFirst Stock Up 0.1%

Shares of NYSE UNF opened at $290.45 on Monday. The company has a market cap of $5.25 billion, a P/E ratio of 45.81 and a beta of 0.62. UniFirst Corporation has a 52 week low of $147.66 and a 52 week high of $306.67. The business has a 50-day simple moving average of $280.48 and a two-hundred day simple moving average of $263.07.

UniFirst (NYSE:UNF - Get Free Report) last announced its quarterly earnings results on Wednesday, July 1st. The textile maker reported $1.09 earnings per share for the quarter, missing the consensus estimate of $1.93 by ($0.84). UniFirst had a net margin of 4.65% and a return on equity of 6.44%. The company had revenue of $634.40 million for the quarter, compared to the consensus estimate of $627.66 million. During the same quarter in the prior year, the company earned $2.13 earnings per share. The company's quarterly revenue was up 3.9% on a year-over-year basis. Equities research analysts anticipate that UniFirst Corporation will post 7.49 EPS for the current year.

UniFirst Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a dividend of $0.365 per share. This represents a $1.46 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Friday, September 4th. UniFirst's dividend payout ratio is 23.03%.

Wall Street Analyst Weigh In

Several analysts have issued reports on UNF shares. UBS Group set a $262.00 target price on UniFirst in a research note on Monday, July 6th. Weiss Ratings downgraded UniFirst from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, July 9th. Four analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $246.67.

About UniFirst

UniFirst Corporation NYSE: UNF is a leading provider of customized uniform rental and facility service programs in North America and Europe. The company specializes in the rental, laundering and maintenance of workwear, corporate apparel and protective garments for a broad range of industries, including manufacturing, automotive, hospitality, healthcare and food processing. UniFirst also offers a suite of facility service products such as entrance mats, restroom supplies, wipers, mops and hygienic services designed to help customers maintain clean and safe environments.

In addition to its core uniform rental business, UniFirst has expanded its product portfolio to include safety and first-responder gear, flame-resistant clothing, high-visibility apparel and personal protective equipment (PPE).

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