Engine Capital Management LP Sells 385,831 Shares of UniFirst Corporation $UNF

Key Points

• Engine Capital Management sharply reduced its UniFirst stake by selling 385,831 shares, an 83.9% decline, leaving it with 74,040 shares worth approximately $18.6 million.
• Analysts maintain a cautious outlook: UniFirst has a consensus “Hold” rating and an average price target of $246.67, despite the stock opening at $296.99.
• UniFirst reported quarterly EPS of $1.09, below the $1.93 consensus estimate, while revenue of $634.4 million exceeded expectations. The company also declared a quarterly dividend of $0.365 per share, yielding about 0.5% annually.

Engine Capital Management LP lessened its holdings in UniFirst Corporation (NYSE:UNF - Free Report) by 83.9% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 74,040 shares of the textile maker's stock after selling 385,831 shares during the period. UniFirst accounts for 2.2% of Engine Capital Management LP's holdings, making the stock its 14th biggest position. Engine Capital Management LP owned about 0.41% of UniFirst worth $18,628,000 as of its most recent SEC filing.

Other large investors have also added to or reduced their stakes in the company. Burney Co. boosted its position in UniFirst by 1.0% during the first quarter. Burney Co. now owns 4,329 shares of the textile maker's stock worth $1,089,000 after purchasing an additional 44 shares during the period. PNC Financial Services Group Inc. raised its position in shares of UniFirst by 0.7% in the fourth quarter. PNC Financial Services Group Inc. now owns 6,876 shares of the textile maker's stock valued at $1,326,000 after purchasing an additional 51 shares during the period. American Century Companies Inc. raised its position in shares of UniFirst by 2.0% in the second quarter. American Century Companies Inc. now owns 4,027 shares of the textile maker's stock valued at $758,000 after purchasing an additional 78 shares during the period. Panagora Asset Management Inc. lifted its stake in shares of UniFirst by 1.3% during the 4th quarter. Panagora Asset Management Inc. now owns 6,238 shares of the textile maker's stock worth $1,203,000 after buying an additional 78 shares during the last quarter. Finally, Covestor Ltd lifted its stake in shares of UniFirst by 11.8% during the 4th quarter. Covestor Ltd now owns 768 shares of the textile maker's stock worth $148,000 after buying an additional 81 shares during the last quarter. Institutional investors own 78.17% of the company's stock.

Wall Street Analyst Weigh In

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

UniFirst Stock Up 0.9%

NYSE UNF opened at $296.99 on Tuesday. The firm has a 50-day moving average price of $271.27 and a two-hundred day moving average price of $251.77. UniFirst Corporation has a 12-month low of $147.66 and a 12-month high of $298.31. The company has a market capitalization of $5.37 billion, a P/E ratio of 46.84 and a beta of 0.63.

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

UniFirst Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be paid 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 is Friday, September 4th. UniFirst's dividend payout ratio (DPR) is 23.03%.

UniFirst Company Profile

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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