UniFirst (NYSE:UNF) Hits New 1-Year High - What's Next?

Key Points

• UniFirst shares hit a new 52-week high, trading as high as $286.91 as investors pushed the stock above its previous close of $275.26. The move came despite relatively light volume of about 31,522 shares.
• Recent analyst activity has been mixed, with UBS setting a $262 price target and Weiss Ratings lowering the stock from buy to hold. Overall, UniFirst still carries a consensus Hold rating and an average price target of $246.67.
• The company posted mixed quarterly results, missing EPS expectations with $1.09 versus $1.93 expected, though revenue of $634.4 million came in slightly above estimates and rose 3.9% year over year. UniFirst also announced a quarterly dividend of $0.365 per share, payable Sept. 25.

Shares of UniFirst Corporation (NYSE:UNF - Get Free Report) hit a new 52-week high on Wednesday . The company traded as high as $286.91 and last traded at $284.4760, with a volume of 31522 shares trading hands. The stock had previously closed at $275.26.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. UBS Group set a $262.00 price target on UniFirst in a research note on Monday, July 6th. Weiss Ratings cut shares of UniFirst from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, July 9th. Four investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, UniFirst currently has a consensus rating of "Hold" and a consensus price target of $246.67.

UniFirst Stock Performance

The company has a market cap of $5.09 billion, a price-to-earnings ratio of 44.48 and a beta of 0.63. The business's 50 day moving average price is $265.22 and its 200-day moving average price is $245.81.

UniFirst (NYSE:UNF - Get Free Report) last released its quarterly earnings data on Wednesday, July 1st. The textile maker reported $1.09 earnings per share for the quarter, missing analysts' consensus estimates of $1.93 by ($0.84). UniFirst had a net margin of 4.65% and a return on equity of 6.44%. The company had revenue of $634.40 million for the quarter, compared to analyst estimates of $627.66 million. During the same period in the previous year, the firm posted $2.13 earnings per share. The firm's revenue for the quarter was up 3.9% compared to the same quarter last year. On average, equities research analysts expect that UniFirst Corporation will post 7.49 earnings per share for the current fiscal year.

UniFirst Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be given a $0.365 dividend. This represents a $1.46 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date is Friday, September 4th. UniFirst's dividend payout ratio is 23.03%.

Institutional Investors Weigh In On UniFirst

Several institutional investors and hedge funds have recently made changes to their positions in the company. Engine Capital Management LP grew its stake in UniFirst by 640.5% during the fourth quarter. Engine Capital Management LP now owns 459,871 shares of the textile maker's stock worth $88,709,000 after buying an additional 397,772 shares during the last quarter. Madison Avenue Partners LP acquired a new position in shares of UniFirst in the 4th quarter worth approximately $58,612,000. Brandes Investment Partners LP boosted its stake in UniFirst by 164.2% in the fourth quarter. Brandes Investment Partners LP now owns 367,786 shares of the textile maker's stock worth $70,946,000 after purchasing an additional 228,586 shares in the last quarter. First Trust Advisors LP grew its holdings in UniFirst by 46.8% during the 4th quarter. First Trust Advisors LP now owns 451,194 shares of the textile maker's stock worth $87,035,000 after acquiring an additional 143,853 shares during the last quarter. Finally, Tweedy Browne Co LLC acquired a new stake in UniFirst in the 4th quarter valued at about $19,687,000. Institutional investors and hedge funds own 78.17% of the company's stock.

About UniFirst

UniFirst Corporation NYSE: UNF is a leading provider of customized uniform rental and facility service programs in North America and Europe. The company specializes in the rental, laundering and maintenance of workwear, corporate apparel and protective garments for a broad range of industries, including manufacturing, automotive, hospitality, healthcare and food processing. UniFirst also offers a suite of facility service products such as entrance mats, restroom supplies, wipers, mops and hygienic services designed to help customers maintain clean and safe environments.

In addition to its core uniform rental business, UniFirst has expanded its product portfolio to include safety and first-responder gear, flame-resistant clothing, high-visibility apparel and personal protective equipment (PPE).

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