Unifirst Corporation (NYSE:UNF) Sees Large Growth in Short Interest

Key Points

• Unifirst Corporation's short interest surged by 39.6% in August, bringing the total to 194,300 shares as of August 15th.
• The company's stock has a current price target consensus of $179.50 from analysts, with ratings ranging from "Hold" to "Sell."
• Unifirst announced a quarterly dividend of $0.35 per share, which will be paid on September 26th, reflecting a yield of 0.8%.

Unifirst Corporation (NYSE:UNF - Get Free Report) saw a significant increase in short interest during the month of August. As of August 15th, there was short interest totaling 194,300 shares, an increase of 39.6% from the July 31st total of 139,200 shares. Approximately 1.3% of the company's shares are sold short. Based on an average daily trading volume, of 119,800 shares, the days-to-cover ratio is currently 1.6 days. Based on an average daily trading volume, of 119,800 shares, the days-to-cover ratio is currently 1.6 days. Approximately 1.3% of the company's shares are sold short.

Analyst Upgrades and Downgrades

UNF has been the topic of a number of recent analyst reports. Barclays set a $152.00 target price on Unifirst and gave the stock an "underweight" rating in a research note on Monday, June 30th. JPMorgan Chase & Co. initiated coverage on Unifirst in a research note on Monday, July 14th. They issued an "underweight" rating and a $175.00 target price on the stock. UBS Group reduced their target price on Unifirst from $196.00 to $194.00 and set a "neutral" rating on the stock in a research note on Monday, June 30th. Finally, Robert W. Baird set a $197.00 target price on Unifirst in a research note on Monday, June 30th. Two analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $179.50.

Unifirst Trading Down 2.6%

Shares of Unifirst stock traded down $4.61 during trading on Friday, hitting $171.61. 80,916 shares of the stock traded hands, compared to its average volume of 78,608. The firm has a market cap of $3.18 billion, a P/E ratio of 21.08 and a beta of 0.86. Unifirst has a 52-week low of $156.34 and a 52-week high of $243.70. The stock's fifty day simple moving average is $174.52 and its 200 day simple moving average is $181.46.

Unifirst (NYSE:UNF - Get Free Report) last announced its quarterly earnings results on Wednesday, July 2nd. The textile maker reported $2.13 EPS for the quarter, beating the consensus estimate of $2.09 by $0.04. The firm had revenue of $610.78 million for the quarter, compared to analyst estimates of $614.50 million. Unifirst had a return on equity of 7.35% and a net margin of 6.18%.The business's revenue for the quarter was up 1.2% on a year-over-year basis. During the same quarter last year, the firm posted $2.20 earnings per share. Unifirst has set its FY 2025 guidance at 7.600-8.00 EPS. As a group, equities analysts expect that Unifirst will post 7.71 EPS for the current year.

Unifirst Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be paid a dividend of $0.35 per share. The ex-dividend date is Friday, September 5th. This represents a $1.40 annualized dividend and a dividend yield of 0.8%. Unifirst's dividend payout ratio (DPR) is currently 17.20%.

Hedge Funds Weigh In On Unifirst

Institutional investors have recently made changes to their positions in the company. Parkside Financial Bank & Trust increased its stake in shares of Unifirst by 285.7% during the second quarter. Parkside Financial Bank & Trust now owns 135 shares of the textile maker's stock valued at $25,000 after buying an additional 100 shares during the period. Advisors Asset Management Inc. purchased a new position in Unifirst in the second quarter valued at about $25,000. Geneos Wealth Management Inc. grew its stake in Unifirst by 474.1% in the first quarter. Geneos Wealth Management Inc. now owns 155 shares of the textile maker's stock valued at $27,000 after purchasing an additional 128 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in Unifirst by 378.1% in the second quarter. EverSource Wealth Advisors LLC now owns 153 shares of the textile maker's stock valued at $29,000 after purchasing an additional 121 shares during the last quarter. Finally, GAMMA Investing LLC grew its stake in Unifirst by 59.9% in the first quarter. GAMMA Investing LLC now owns 227 shares of the textile maker's stock valued at $39,000 after purchasing an additional 85 shares during the last quarter. Hedge funds and other institutional investors own 78.17% of the company's stock.

About Unifirst

UniFirst Corporation provides workplace uniforms and protective work wear clothing in the United States, Europe, and Canada. The company operates through U.S. and Canadian Rental and Cleaning, Manufacturing, Specialty Garments Rental and Cleaning, and First Aid segments. It designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, and aprons; and specialized protective wear, such as flame resistant and high visibility garments.