AlphaQuest LLC Reduces Holdings in US Foods Holding Corp. $USFD

Key Points

• AlphaQuest LLC significantly reduced its stake in US Foods Holding Corp. by 86.8% in the first quarter, leaving it with only 2,530 shares valued at $166,000.
• Boston Partners increased its investment in US Foods by 29.1%, owning over 16 million shares, while other firms like Burgundy Asset Management and Jupiter Asset Management made significant new investments.
• Analysts' ratings for US Foods have improved, with price targets raised by firms like Barclays and UBS, reflecting a generally positive outlook for the stock.

AlphaQuest LLC reduced its holdings in shares of US Foods Holding Corp. (NYSE:USFD - Free Report) by 86.8% during the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 2,530 shares of the company's stock after selling 16,688 shares during the period. AlphaQuest LLC's holdings in US Foods were worth $166,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Boston Partners raised its holdings in shares of US Foods by 29.1% in the first quarter. Boston Partners now owns 16,457,351 shares of the company's stock valued at $1,076,225,000 after buying an additional 3,713,345 shares during the last quarter. Burgundy Asset Management Ltd. purchased a new stake in shares of US Foods in the first quarter valued at about $110,245,000. Jupiter Asset Management Ltd. purchased a new stake in shares of US Foods in the first quarter valued at about $91,087,000. Invesco Ltd. grew its stake in shares of US Foods by 21.8% in the 1st quarter. Invesco Ltd. now owns 7,546,048 shares of the company's stock valued at $493,964,000 after purchasing an additional 1,350,034 shares during the last quarter. Finally, Primecap Management Co. CA grew its stake in shares of US Foods by 194.6% in the 1st quarter. Primecap Management Co. CA now owns 1,941,400 shares of the company's stock valued at $127,084,000 after purchasing an additional 1,282,379 shares during the last quarter. 98.76% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

USFD has been the subject of several recent research reports. Wells Fargo & Company reaffirmed 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. UBS Group raised their target price on shares of US Foods from $84.00 to $96.00 and gave the stock a "buy" rating in a research note on Monday, July 28th. Citigroup began coverage on shares of US Foods in a research note on Thursday, May 22nd. They set a "buy" rating and a $95.00 price target on the stock. Morgan Stanley reissued an "overweight" rating and set a $89.00 price target (up from $84.00) on shares of US Foods in a report on Monday, July 14th. Finally, Barclays lifted their price objective on US Foods from $85.00 to $95.00 and gave the company an "overweight" rating in a report on Wednesday, June 4th. Two investment 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. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $81.27.

US Foods Price Performance

Shares of USFD traded up $0.70 during trading hours on Thursday, reaching $77.87. The company had a trading volume of 476,246 shares, compared to its average volume of 2,220,472. The firm has a 50 day simple moving average of $79.88 and a 200-day simple moving average of $73.19. The company has a current ratio of 1.17, a quick ratio of 0.73 and a debt-to-equity ratio of 1.02. The company has a market capitalization of $17.53 billion, a price-to-earnings ratio of 33.28, a PEG ratio of 1.09 and a beta of 1.39. US Foods Holding Corp. has a 12-month low of $56.47 and a 12-month high of $85.11.

US Foods (NYSE:USFD - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported $1.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.14 by $0.05. The business had revenue of $10.08 billion during 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 was up 3.8% compared to the same quarter last year. During the same quarter last year, the firm posted $0.93 EPS. US Foods has set its FY 2025 guidance at 3.764-3.874 EPS. Research analysts expect that US Foods Holding Corp. will post 3.59 earnings per share for the current year.

Insider Transactions at US Foods

In related news, EVP Dirk J. Locascio sold 7,500 shares of US Foods stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $80.00, for a total transaction of $600,000.00. Following the completion of the transaction, the executive vice president directly owned 115,077 shares of the company's stock, valued at approximately $9,206,160. The trade was a 6.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 0.60% of the company's stock.

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.