Burgundy Asset Management Ltd. Takes Position in US Foods Holding Corp. $USFD

Key Points

• Burgundy Asset Management Ltd. acquired 1,684,154 shares of US Foods Holding Corp. for approximately $110 million, representing 0.73% ownership as of the latest SEC filing.
• Several institutional investors, including Boston Partners and Invesco Ltd., have significantly increased their stakes in US Foods, reflecting strong interest in the stock as institutional ownership reaches 98.76%.
• US Foods reported a Q2 earnings per share of $1.19, surpassing analyst expectations, with a modest year-over-year revenue growth of 3.8% despite falling short of revenue estimates.

Burgundy Asset Management Ltd. bought a new stake in US Foods Holding Corp. (NYSE:USFD - Free Report) in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 1,684,154 shares of the company's stock, valued at approximately $110,245,000. Burgundy Asset Management Ltd. owned about 0.73% of US Foods as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also made changes to their positions in the company. Colonial Trust Co SC purchased a new stake in shares of US Foods in the fourth quarter valued at about $25,000. GeoWealth Management LLC raised its holdings in shares of US Foods by 94.5% in the fourth quarter. GeoWealth Management LLC now owns 389 shares of the company's stock valued at $26,000 after buying an additional 189 shares during the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in shares of US Foods in the first quarter valued at about $31,000. True Wealth Design LLC raised its holdings in shares of US Foods by 153.6% in the fourth quarter. True Wealth Design LLC now owns 492 shares of the company's stock valued at $33,000 after buying an additional 298 shares during the last quarter. Finally, Blue Trust Inc. raised its holdings in shares of US Foods by 487.2% in the first quarter. Blue Trust Inc. now owns 875 shares of the company's stock valued at $57,000 after buying an additional 726 shares during the last quarter. 98.76% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on USFD shares. Morgan Stanley reaffirmed an "overweight" rating and issued a $89.00 target price (up from $84.00) on shares of US Foods in a report on Monday, July 14th. Wall Street Zen raised shares of US Foods from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 24th. Barclays increased their price target on shares of US Foods from $85.00 to $95.00 and gave the stock an "overweight" rating in a report on Wednesday, June 4th. Guggenheim increased their price target on shares of US Foods from $80.00 to $88.00 and gave the stock a "buy" rating in a report on Monday, August 11th. Finally, Wells Fargo & Company reissued an "overweight" rating and set a $87.00 price target (up from $80.00) on shares of US Foods in a report on Friday, August 8th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $80.55.

Insiders Place Their Bets

In other US Foods news, EVP Dirk J. Locascio sold 7,500 shares of the company's stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $80.00, for a total transaction of $600,000.00. Following the transaction, the executive vice president directly owned 115,077 shares in the company, valued at approximately $9,206,160. This represents a 6.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 0.60% of the company's stock.

US Foods Price Performance

USFD traded up $1.7530 on Wednesday, hitting $78.7530. 2,351,970 shares of the company were exchanged, compared to its average volume of 2,264,607. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.73 and a current ratio of 1.17. The business's fifty day moving average is $79.53 and its 200 day moving average is $72.69. US Foods Holding Corp. has a fifty-two week low of $56.47 and a fifty-two week high of $85.11. The firm has a market capitalization of $17.73 billion, a P/E ratio of 33.66, a price-to-earnings-growth ratio of 1.09 and a beta of 1.44.

US Foods (NYSE:USFD - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported $1.19 earnings per share 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 company had revenue of $10.08 billion for the quarter, compared to analyst estimates of $10.17 billion. During the same period in the prior year, the business posted $0.93 earnings per share. The firm's revenue for the quarter 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 anticipate that US Foods Holding Corp. will post 3.59 EPS for the current year.

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.