Performance Food Group (NYSE:PFGC) Shares Gap Up After Strong Earnings

Key Points

• Performance Food Group reported a beat with $0.80 EPS vs. $0.77 expected and $16.29B revenue (consensus $16.17B), sending the stock to a gap-up open at $95.04 (prior close $87.12) and trading up roughly 6.7%.
• Analysts have trimmed price targets recently but the consensus remains a "Moderate Buy", with an average price target of $116.44 (nine Buys, two Holds).
• An insider sold 1,843 shares while institutional investors own 96.87% of the stock; the company has a $14.57B market cap and a PE ratio of 42.11.

Performance Food Group Company (NYSE:PFGC - Get Free Report) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $87.12, but opened at $95.04. Performance Food Group shares last traded at $92.51, with a volume of 449,160 shares trading hands.

The food distribution company reported $0.80 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.77 by $0.03. The business had revenue of $16.29 billion during the quarter, compared to the consensus estimate of $16.17 billion. Performance Food Group had a net margin of 0.52% and a return on equity of 15.64%. The business's revenue was up 6.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.79 EPS.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. Barclays dropped their target price on shares of Performance Food Group from $120.00 to $105.00 and set an "overweight" rating for the company in a report on Wednesday, January 7th. Citigroup dropped their target price on shares of Performance Food Group from $127.00 to $126.00 and set a "buy" rating for the company in a report on Friday, February 6th. Morgan Stanley decreased their price target on shares of Performance Food Group from $123.00 to $120.00 and set an "overweight" rating for the company in a research report on Thursday, February 5th. UBS Group decreased their price target on shares of Performance Food Group from $120.00 to $108.00 and set a "buy" rating for the company in a research report on Thursday, February 5th. Finally, Sanford C. Bernstein reissued an "outperform" rating on shares of Performance Food Group in a research report on Thursday, February 5th. Nine equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $116.44.

Insider Buying and Selling

In other Performance Food Group news, insider Chasity D. Grosh sold 1,843 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $92.03, for a total value of $169,611.29. Following the completion of the transaction, the insider owned 6,601 shares of the company's stock, valued at $607,490.03. This trade represents a 21.83% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 4.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Performance Food Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PFGC. AE Wealth Management LLC purchased a new stake in shares of Performance Food Group during the 3rd quarter worth $1,666,000. Strs Ohio lifted its position in shares of Performance Food Group by 54.4% during the 3rd quarter. Strs Ohio now owns 149,751 shares of the food distribution company's stock worth $15,580,000 after purchasing an additional 52,734 shares during the last quarter. Maven Securities LTD purchased a new stake in shares of Performance Food Group during the 3rd quarter worth $2,589,000. Close Asset Management Ltd lifted its position in shares of Performance Food Group by 7.5% during the 3rd quarter. Close Asset Management Ltd now owns 2,080,377 shares of the food distribution company's stock worth $216,536,000 after purchasing an additional 145,387 shares during the last quarter. Finally, Capital World Investors lifted its position in shares of Performance Food Group by 0.8% during the 3rd quarter. Capital World Investors now owns 22,446,853 shares of the food distribution company's stock worth $2,335,371,000 after purchasing an additional 185,624 shares during the last quarter. Hedge funds and other institutional investors own 96.87% of the company's stock.

Performance Food Group Trading Up 6.7%

The firm has a market capitalization of $14.57 billion, a PE ratio of 42.11, a PEG ratio of 1.36 and a beta of 0.92. The company's 50-day moving average price is $88.41 and its 200-day moving average price is $92.57. The company has a debt-to-equity ratio of 1.45, a quick ratio of 0.68 and a current ratio of 1.60.

About Performance Food Group

Performance Food Group Company NYSE: PFGC is a leading foodservice distribution company headquartered in Richmond, Virginia. The company operates through multiple segments, offering a broad range of products including fresh, frozen and dry foods, as well as non-food items such as supplies, paper goods and equipment. Performance Food Group serves a diverse customer base that encompasses independent and multi-unit restaurants, healthcare facilities, hospitality venues, schools, and other institutional customers.

Through its national broadline division, Performance Food Group provides next-day delivery of products sourced from both company-owned processing facilities and third-party suppliers.

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