Primecap Management Co. CA Makes New $407 Million Investment in US Foods Holding Corp. $USFD

Key Points

• Primecap Management acquired 3.98 million US Foods shares worth approximately $407 million, giving it a 1.84% stake. Institutional investors collectively own 98.76% of the company.
• Analysts remain broadly positive, with 11 Buy ratings and four Holds; the consensus rating is “Moderate Buy” with an average price target of $113.92.
• US Foods exceeded quarterly expectations, reporting $1.44 in EPS versus $1.36 expected and $10.53 billion in revenue, up 4.5% year over year. Shares opened at $108.95, near their 12-month high.

Primecap Management Co. CA acquired a new position in shares of US Foods Holding Corp. (NYSE:USFD - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund acquired 3,980,409 shares of the company's stock, valued at approximately $406,997,000. Primecap Management Co. CA owned 1.84% of US Foods at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in the stock. Keating Financial Advisory Services Inc. purchased a new stake in US Foods during the 2nd quarter valued at about $27,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of US Foods in the second quarter worth about $28,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of US Foods during the third quarter worth about $26,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of US Foods during the second quarter worth about $39,000. Finally, Geneos Wealth Management Inc. boosted its position in US Foods by 120.1% in the second quarter. Geneos Wealth Management Inc. now owns 482 shares of the company's stock valued at $37,000 after buying an additional 263 shares during the last quarter. 98.76% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other US Foods news, insider Randy J. Taylor sold 11,630 shares of the company's stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $110.37, for a total transaction of $1,283,603.10. Following the completion of the transaction, the insider directly owned 73,618 shares in the company, valued at approximately $8,125,218.66. This represents a 13.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider William Spencer Hancock sold 21,754 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $108.29, for a total transaction of $2,355,740.66. Following the transaction, the insider directly owned 101,144 shares in the company, valued at approximately $10,952,883.76. The trade was a 17.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.74% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Wall Street Zen upgraded shares of US Foods from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Guggenheim upped their price objective on shares of US Foods from $115.00 to $120.00 and gave the company a "buy" rating in a report 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 note on Wednesday, August 12th. BTIG Research raised their target price on shares of US Foods from $105.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Finally, Citigroup raised their target price on shares of US Foods from $110.00 to $124.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Eleven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $113.92.

US Foods Trading Down 0.4%

Shares of NYSE:USFD opened at $108.95 on Wednesday. The company has a current ratio of 1.14, a quick ratio of 0.70 and a debt-to-equity ratio of 1.19. US Foods Holding Corp. has a 12-month low of $69.88 and a 12-month high of $111.42. The business has a 50 day moving average of $101.60 and a two-hundred day moving average of $94.11. The company has a market capitalization of $23.57 billion, a PE ratio of 33.52, a PEG ratio of 1.39 and a beta of 0.81.

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

US Foods Company Profile

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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