UniFirst (NYSE:UNF) Stock Price Down 5.4% - Here's What Happened

Key Points

• UniFirst shares fell 5.4% to approximately $264.48, with trading volume down 85% from the stock’s average daily volume.
• The company reported quarterly EPS of $1.90, missing the $2.04 consensus estimate, although revenue rose 5% year over year to $645.01 million and exceeded expectations.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $246.67, while institutional investors own 78.17% of UniFirst’s outstanding shares.

UniFirst Corporation (NYSE:UNF - Get Free Report) dropped 5.4% during trading on Tuesday. The company traded as low as $276.02 and last traded at $264.4770. 37,697 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 257,424 shares. The stock had previously closed at $279.64.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on UNF shares. Zacks Research upgraded shares of UniFirst from a "hold" rating to a "strong-buy" rating in a report on Thursday, October 22nd. UBS Group set a $262.00 price target on shares of UniFirst in a research report on Monday, July 6th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of UniFirst in a research note on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, UniFirst has an average rating of "Moderate Buy" and an average target price of $246.67.

UniFirst Trading Down 8.1%

The firm has a market cap of $4.64 billion, a price-to-earnings ratio of 42.73 and a beta of 0.60. The company has a fifty day moving average price of $269.61 and a 200-day moving average price of $259.07.

UniFirst (NYSE:UNF - Get Free Report) last issued its earnings results on Wednesday, October 21st. The textile maker reported $1.90 EPS for the quarter, missing analysts' consensus estimates of $2.04 by ($0.14). The company had revenue of $645.01 million during the quarter, compared to analysts' expectations of $634.40 million. UniFirst had a return on equity of 6.65% and a net margin of 4.34%. The firm's quarterly revenue was up 5.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.23 EPS. As a group, research analysts forecast that UniFirst Corporation will post 8.52 earnings per share for the current fiscal year.

Institutional Investors Weigh In On UniFirst

Several hedge funds have recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in UniFirst during the second quarter worth $580,008,000. State Street Corp increased its holdings in UniFirst by 2.9% in the second quarter. State Street Corp now owns 584,085 shares of the textile maker's stock valued at $154,467,000 after buying an additional 16,208 shares in the last quarter. Bank of America Corp DE increased its holdings in UniFirst by 4.3% in the second quarter. Bank of America Corp DE now owns 158,466 shares of the textile maker's stock valued at $41,908,000 after buying an additional 6,541 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of UniFirst in the second quarter worth about $30,584,000. Finally, Squarepoint Ops LLC raised its position in shares of UniFirst by 75.8% in the second quarter. Squarepoint Ops LLC now owns 107,196 shares of the textile maker's stock worth $28,349,000 after acquiring an additional 46,221 shares during the period. Hedge funds and other institutional investors own 78.17% of the company's stock.

About UniFirst

UniFirst Corporation NYSE: UNF provides workplace uniforms, workwear rental, and textile services to businesses and organizations. Its offerings include uniform rental and laundering, work garments, protective apparel, floor mats, restroom supplies, first-aid products, and other workplace service programs.

The company also provides specialized apparel and services for industries with particular cleanliness or safety requirements, including healthcare, manufacturing, food processing, and cleanroom environments.

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