Short Interest in United Natural Foods, Inc. (NYSE:UNFI) Rises By 2,750.6%

Key Points

• Short interest in United Natural Foods, Inc. increased dramatically by 2,750.6% in July, rising to 4,980,000 shares from 174,700 in June, indicating potential market bearishness.
• Major institutional investors, including Marshall Wace LLP and Nuveen LLC, have significantly increased their stakes in United Natural Foods, with institutional ownership now at 87.63%.
• Analysts have set a consensus price target of $28.13 for the stock, with varying upgrades and downgrades from firms like Deutsche Bank and UBS, reflecting differing outlooks on its performance.

United Natural Foods, Inc. (NYSE:UNFI - Get Free Report) was the target of a large growth in short interest during the month of July. As of July 15th, there was short interest totaling 4,980,000 shares, agrowthof2,750.6% from the June 30th total of 174,700 shares. Based on an average trading volume of 1,080,000 shares, the days-to-cover ratio is currently 4.6 days. Based on an average trading volume of 1,080,000 shares, the days-to-cover ratio is currently 4.6 days.

Hedge Funds Weigh In On United Natural Foods

Institutional investors and hedge funds have recently made changes to their positions in the stock. Marshall Wace LLP increased its holdings in United Natural Foods by 207.0% during the 4th quarter. Marshall Wace LLP now owns 1,357,212 shares of the company's stock worth $37,065,000 after purchasing an additional 915,177 shares in the last quarter. Nuveen LLC bought a new stake in United Natural Foods during the 1st quarter worth approximately $24,171,000. Senvest Management LLC bought a new stake in United Natural Foods during the 4th quarter worth approximately $18,161,000. American Century Companies Inc. increased its holdings in United Natural Foods by 20.6% during the 1st quarter. American Century Companies Inc. now owns 2,433,948 shares of the company's stock worth $66,666,000 after purchasing an additional 415,700 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its holdings in shares of United Natural Foods by 162.7% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 587,697 shares of the company's stock valued at $16,050,000 after acquiring an additional 363,962 shares in the last quarter. Institutional investors own 87.63% of the company's stock.

United Natural Foods Stock Performance

NYSE UNFI traded down $0.50 during trading on Tuesday, reaching $25.87. 304,845 shares of the company's stock were exchanged, compared to its average volume of 883,254. The business has a 50 day moving average price of $25.22 and a 200-day moving average price of $27.07. The stock has a market capitalization of $1.57 billion, a P/E ratio of -22.51 and a beta of 0.82. The company has a debt-to-equity ratio of 1.21, a current ratio of 1.41 and a quick ratio of 0.51. United Natural Foods has a fifty-two week low of $12.00 and a fifty-two week high of $34.76.

United Natural Foods (NYSE:UNFI - Get Free Report) last released its earnings results on Tuesday, June 10th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.22. United Natural Foods had a positive return on equity of 3.13% and a negative net margin of 0.21%. The firm had revenue of $8.06 billion during the quarter, compared to analysts' expectations of $7.78 billion. During the same period in the prior year, the company earned $0.10 earnings per share. The company's quarterly revenue was up 7.5% on a year-over-year basis. Sell-side analysts forecast that United Natural Foods will post 0.76 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of brokerages have recently weighed in on UNFI. Wells Fargo & Company upgraded United Natural Foods from an "underweight" rating to an "equal weight" rating and boosted their price target for the company from $25.00 to $26.00 in a report on Wednesday, July 16th. BMO Capital Markets reduced their price objective on United Natural Foods from $32.00 to $25.00 and set a "market perform" rating for the company in a research report on Thursday, June 12th. The Goldman Sachs Group reduced their price objective on United Natural Foods from $30.00 to $26.00 and set a "neutral" rating for the company in a research report on Thursday, June 12th. Northcoast Research upgraded United Natural Foods from a "neutral" rating to a "buy" rating and set a $36.00 price target for the company in a research report on Tuesday, July 22nd. Finally, UBS Group boosted their price objective on United Natural Foods from $26.00 to $29.00 and gave the stock a "neutral" rating in a research note on Thursday, July 17th. Seven investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to MarketBeat, United Natural Foods presently has a consensus rating of "Hold" and an average price target of $28.13.

United Natural Foods Company Profile

United Natural Foods, Inc, together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates in two segments, Wholesale and Retail. The company offers grocery and general merchandise, produce, perishables and frozen foods, wellness and personal care items, and bulk and foodservice products.