Cerity Partners LLC Makes New Investment in Unifirst Corporation (NYSE:UNF)

Key Points

• Cerity Partners LLC acquired a new position in UniFirst Corporation by purchasing 3,113 shares worth approximately $542,000 in the first quarter.
• UniFirst reported earnings of $2.13 per share, exceeding analyst expectations of $2.09, with quarterly revenue up by 1.2% compared to last year.
• The company has authorized a $100 million share buyback program, indicating belief in the undervaluation of its shares.

Cerity Partners LLC acquired a new position in shares of Unifirst Corporation (NYSE:UNF - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 3,113 shares of the textile maker's stock, valued at approximately $542,000.

Several other large investors have also recently added to or reduced their stakes in UNF. Envestnet Asset Management Inc. raised its stake in Unifirst by 5.3% in the first quarter. Envestnet Asset Management Inc. now owns 162,751 shares of the textile maker's stock valued at $28,319,000 after purchasing an additional 8,253 shares in the last quarter. Principal Financial Group Inc. raised its stake in Unifirst by 2.6% in the first quarter. Principal Financial Group Inc. now owns 74,734 shares of the textile maker's stock valued at $13,004,000 after purchasing an additional 1,927 shares in the last quarter. DAVENPORT & Co LLC raised its stake in Unifirst by 1.1% in the first quarter. DAVENPORT & Co LLC now owns 7,613 shares of the textile maker's stock valued at $1,325,000 after purchasing an additional 86 shares in the last quarter. QRG Capital Management Inc. raised its stake in Unifirst by 11.5% in the first quarter. QRG Capital Management Inc. now owns 3,446 shares of the textile maker's stock valued at $600,000 after purchasing an additional 355 shares in the last quarter. Finally, ABS Direct Equity Fund LLC acquired a new position in Unifirst in the first quarter valued at about $2,088,000. Institutional investors own 78.17% of the company's stock.

Analyst Ratings Changes

A number of research analysts recently commented on the company. Robert W. Baird set a $197.00 price target on Unifirst in a research note on Monday, June 30th. UBS Group decreased their target price on Unifirst from $196.00 to $194.00 and set a "neutral" rating on the stock in a research report on Monday, June 30th. Barclays set a $152.00 target price on Unifirst and gave the company an "underweight" rating in a research report on Monday, June 30th. Finally, JPMorgan Chase & Co. assumed coverage on Unifirst in a research report on Monday, July 14th. They issued an "underweight" rating and a $175.00 target price on the stock. Two investment analysts have rated the stock with a sell rating, two have issued a hold rating and one has issued a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $179.50.

Unifirst Stock Performance

Shares of Unifirst stock traded up $1.54 on Tuesday, hitting $175.54. The stock had a trading volume of 5,160 shares, compared to its average volume of 135,287. The stock has a 50 day moving average of $182.02 and a 200 day moving average of $191.89. Unifirst Corporation has a twelve month low of $156.34 and a twelve month high of $243.70. The firm has a market capitalization of $3.26 billion, a P/E ratio of 21.57 and a beta of 0.86.

Unifirst (NYSE:UNF - Get Free Report) last released its quarterly earnings data on Wednesday, July 2nd. The textile maker reported $2.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.04. Unifirst had a return on equity of 7.35% and a net margin of 6.18%. The company had revenue of $610.78 million during the quarter, compared to the consensus estimate of $614.50 million. During the same quarter in the prior year, the firm posted $2.20 earnings per share. The firm's revenue was up 1.2% compared to the same quarter last year. Equities analysts expect that Unifirst Corporation will post 7.71 earnings per share for the current year.

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

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.