Tensile Capital Management LP Lowers Position in US Foods Holding Corp. $USFD

Key Points

• Tensile Capital Management LP reduced its stake in US Foods Holding Corp. by 2.6%, owning 824,042 shares, which represent 6.9% of its portfolio, making it the company's 7th largest holder.
• US Foods reported a quarterly earnings per share (EPS) of $1.19, exceeding analysts' expectations, despite a revenue of $10.08 billion that fell short of projections.
• Multiple equity analysts have raised their price targets for US Foods, with UBS Group setting a new target of $96.00 while the consensus price target stands at $81.27, indicating positive market sentiment towards the stock.

Tensile Capital Management LP trimmed its holdings in US Foods Holding Corp. (NYSE:USFD - Free Report) by 2.6% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 824,042 shares of the company's stock after selling 22,272 shares during the period. US Foods comprises approximately 6.9% of Tensile Capital Management LP's holdings, making the stock its 7th largest holding. Tensile Capital Management LP owned about 0.36% of US Foods worth $53,942,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Sumitomo Mitsui Trust Group Inc. lifted its holdings in US Foods by 14.5% in the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 9,500 shares of the company's stock worth $622,000 after acquiring an additional 1,200 shares during the last quarter. Allianz Asset Management GmbH increased its stake in US Foods by 152.6% in the 1st quarter. Allianz Asset Management GmbH now owns 104,768 shares of the company's stock valued at $6,858,000 after buying an additional 63,288 shares during the period. Jupiter Asset Management Ltd. purchased a new stake in shares of US Foods during the 1st quarter worth about $91,087,000. GAMMA Investing LLC raised its holdings in shares of US Foods by 16.0% during the 1st quarter. GAMMA Investing LLC now owns 3,458 shares of the company's stock valued at $226,000 after purchasing an additional 478 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC raised its stake in shares of US Foods by 49.5% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 41,715 shares of the company's stock valued at $2,731,000 after acquiring an additional 13,821 shares in the last quarter. Institutional investors and hedge funds own 98.76% of the company's stock.

Insider Activity at US Foods

In related news, EVP Dirk J. Locascio sold 7,500 shares of the firm'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 of the company's stock, valued at $9,206,160. This trade represents a 6.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.60% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on USFD shares. Piper Sandler upped their price objective on shares of US Foods from $77.00 to $85.00 and gave the company an "overweight" rating in a research report on Tuesday, September 2nd. Citigroup assumed coverage on US Foods in a research report on Thursday, May 22nd. They issued a "buy" rating and a $95.00 price objective on the stock. Wells Fargo & Company restated an "overweight" rating and issued a $87.00 price target (up from $80.00) on shares of US Foods in a research report on Friday, August 8th. Wall Street Zen raised US Foods from a "buy" rating to a "strong-buy" rating in a research note on Friday, September 5th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $89.00 price objective (up from $84.00) on shares of US Foods in a report on Monday, July 14th. Two analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $81.27.

US Foods Stock Performance

USFD stock traded down $0.34 during mid-day trading on Wednesday, hitting $77.72. 1,847,012 shares of the company were exchanged, compared to its average volume of 2,212,740. US Foods Holding Corp. has a 1-year low of $56.65 and a 1-year high of $85.11. The stock has a market capitalization of $17.50 billion, a PE ratio of 33.22, a price-to-earnings-growth ratio of 1.10 and a beta of 1.39. The business has a 50 day simple moving average of $79.96 and a 200-day simple moving average of $73.40. The company has a current ratio of 1.17, a quick ratio of 0.73 and a debt-to-equity ratio of 1.02.

US Foods (NYSE:USFD - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported $1.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.14 by $0.05. The firm had revenue of $10.08 billion for the quarter, compared to the consensus estimate of $10.17 billion. US Foods had a net margin of 1.43% and a return on equity of 16.86%. The business's revenue for the quarter was up 3.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.93 earnings per share. US Foods has set its FY 2025 guidance at 3.764-3.874 EPS. On average, equities analysts forecast that US Foods Holding Corp. will post 3.59 earnings per share 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.