Unifi (NYSE:UFI) Stock Passes Below 200 Day Moving Average - Should You Sell?

Key Points

• Unifi, Inc. (NYSE:UFI) shares fell below their 200-day moving average of $4.76, trading at $4.65, indicating a potential bearish trend.
• Analysts maintain a consensus “Sell” rating for the stock, although one brokerage recently upgraded their view from "sell" to "hold."
• Unifi reported (-$0.56) earnings per share for the recent quarter, beating analyst expectations but posting a negative net margin and revenue below estimates.

Unifi, Inc. (NYSE:UFI - Get Free Report) shares passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $4.76 and traded as low as $4.60. Unifi shares last traded at $4.65, with a volume of 45,652 shares traded.

Wall Street Analysts Forecast Growth

Several brokerages have commented on UFI. Wall Street Zen raised Unifi from a "sell" rating to a "hold" rating in a report on Saturday, September 13th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Unifi in a report on Wednesday, October 8th. One research analyst has rated the stock with a Sell rating, According to MarketBeat, the company has a consensus rating of "Sell".

Unifi Stock Up 1.4%

The company has a current ratio of 3.32, a quick ratio of 1.59 and a debt-to-equity ratio of 0.38. The stock's 50-day moving average is $4.55 and its 200-day moving average is $4.76. The company has a market cap of $85.28 million, a price-to-earnings ratio of -4.07 and a beta of 0.61.

Unifi (NYSE:UFI - Get Free Report) last released its earnings results on Wednesday, August 20th. The textile maker reported ($0.56) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.80) by $0.24. Unifi had a negative net margin of 3.56% and a negative return on equity of 19.64%. The company had revenue of $138.54 million for the quarter, compared to the consensus estimate of $149.84 million. On average, analysts anticipate that Unifi, Inc. will post -2.25 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in UFI. Pinnacle Associates Ltd. raised its stake in Unifi by 4.8% during the 1st quarter. Pinnacle Associates Ltd. now owns 1,004,564 shares of the textile maker's stock worth $4,832,000 after buying an additional 46,401 shares during the period. Minerva Advisors LLC raised its stake in Unifi by 6.1% during the 1st quarter. Minerva Advisors LLC now owns 907,774 shares of the textile maker's stock worth $4,366,000 after buying an additional 52,533 shares during the period. 22NW LP raised its stake in Unifi by 212.9% during the 1st quarter. 22NW LP now owns 731,535 shares of the textile maker's stock worth $3,519,000 after buying an additional 497,758 shares during the period. Goldman Sachs Group Inc. acquired a new position in Unifi during the 1st quarter worth approximately $96,000. Finally, Jane Street Group LLC acquired a new position in Unifi during the 1st quarter worth approximately $64,000. 67.67% of the stock is owned by institutional investors and hedge funds.

Unifi Company Profile

Unifi, Inc, together with its subsidiaries, engages in the manufacture and sale of recycled and synthetic products in North America, Central America, South America, Asia, and Europe. Its polyester products include partially oriented yarn, textured, solution and package dyed, twisted, beamed, and draw wound yarns in virgin or recycled varieties; and nylon products comprise virgin or recycled textured, solution dyed, and spandex covered yarns.

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