Tensile Capital Management LP Trims Stock 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 decreased its position in shares of US Foods Holding Corp. (NYSE:USFD - Free Report) by 2.6% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 824,042 shares of the company's stock after selling 22,272 shares during the period. US Foods accounts for 6.9% of Tensile Capital Management LP's investment portfolio, making the stock its 7th biggest holding. Tensile Capital Management LP owned approximately 0.36% of US Foods worth $53,942,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of US Foods by 14.5% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 9,500 shares of the company's stock worth $622,000 after purchasing an additional 1,200 shares during the period. Allianz Asset Management GmbH increased its holdings in shares of US Foods by 152.6% during the 1st quarter. Allianz Asset Management GmbH now owns 104,768 shares of the company's stock worth $6,858,000 after purchasing an additional 63,288 shares during the period. Jupiter Asset Management Ltd. bought a new position in shares of US Foods during the 1st quarter worth about $91,087,000. GAMMA Investing LLC increased 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 worth $226,000 after purchasing an additional 478 shares during the period. Finally, Wealth Enhancement Advisory Services LLC boosted its position in shares of US Foods by 49.5% during 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

In other news, EVP Dirk J. Locascio sold 7,500 shares of the firm's stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $80.00, for a total value of $600,000.00. Following the transaction, the executive vice president directly owned 115,077 shares in the company, valued at $9,206,160. This trade represents a 6.12% decrease in their position. 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 owned by corporate insiders.

US Foods Trading Down 0.0%

NYSE:USFD traded down $0.03 during trading hours on Friday, hitting $79.85. 596,440 shares of the stock were exchanged, compared to its average volume of 2,201,900. The company has a market capitalization of $17.98 billion, a P/E ratio of 34.14, a price-to-earnings-growth ratio of 1.09 and a beta of 1.39. The company has a quick ratio of 0.73, a current ratio of 1.17 and a debt-to-equity ratio of 1.02. The company's 50 day moving average is $79.99 and its two-hundred day moving average is $73.49. US Foods Holding Corp. has a twelve month low of $57.36 and a twelve month high of $85.11.

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

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on USFD shares. Piper Sandler increased their target price on US Foods from $77.00 to $85.00 and gave the stock an "overweight" rating in a report on Tuesday, September 2nd. UBS Group increased their price objective on US Foods from $84.00 to $96.00 and gave the stock a "buy" rating in a research note on Monday, July 28th. JPMorgan Chase & Co. boosted their target price on shares of US Foods from $82.00 to $85.00 and gave the company a "neutral" rating in a research note on Wednesday, June 25th. Citigroup began coverage on shares of US Foods in a research report on Thursday, May 22nd. They set a "buy" rating and a $95.00 target price for the company. 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 investment analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, US Foods has a consensus rating of "Buy" and a consensus target price of $81.27.

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.