Unifirst (NYSE:UNF) Stock Price Down 5% - Here's What Happened

Unifirst Corporation (NYSE:UNF - Get Free Report) shares were down 5% during trading on Wednesday . The company traded as low as $175.00 and last traded at $180.92. Approximately 83,048 shares traded hands during trading, a decline of 22% from the average daily volume of 106,280 shares. The stock had previously closed at $190.41.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on UNF shares. Robert W. Baird set a $197.00 price target on Unifirst in a research note on Monday, June 30th. Barclays set a $152.00 target price on Unifirst and gave the stock an "underweight" rating in a research report on Monday, June 30th. Finally, UBS Group cut their price target on shares of Unifirst from $196.00 to $194.00 and set a "neutral" rating on the stock in a report on Monday, June 30th.

Unifirst Stock Up 2.3%

The firm has a 50 day moving average of $184.70 and a 200-day moving average of $192.71. The company has a market cap of $3.25 billion, a P/E ratio of 21.50 and a beta of 0.86.

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. Unifirst had a return on equity of 7.35% and a net margin of 6.18%. The firm had revenue of $610.78 million for the quarter, compared to analyst estimates of $614.50 million. During the same quarter last year, the firm posted $2.20 earnings per share. The business's revenue for the quarter was up 1.2% on a year-over-year basis. On average, research analysts predict that Unifirst Corporation will post 7.71 EPS for the current fiscal year.

Unifirst Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 27th. Stockholders of record on Friday, June 6th were given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.80%. The ex-dividend date was Friday, June 6th. Unifirst's payout ratio is currently 17.20%.

Unifirst announced that its board has approved a stock buyback program on Tuesday, April 8th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the textile maker to purchase up to 3.3% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Unifirst

Hedge funds have recently modified their holdings of the company. Geneos Wealth Management Inc. lifted its position in shares of Unifirst by 474.1% during the 1st quarter. Geneos Wealth Management Inc. now owns 155 shares of the textile maker's stock valued at $27,000 after buying an additional 128 shares in the last quarter. GAMMA Investing LLC raised its position in Unifirst by 59.9% during the first quarter. GAMMA Investing LLC now owns 227 shares of the textile maker's stock worth $39,000 after acquiring an additional 85 shares during the period. Fifth Third Bancorp lifted its holdings in Unifirst by 88.7% during the first quarter. Fifth Third Bancorp now owns 266 shares of the textile maker's stock valued at $46,000 after purchasing an additional 125 shares in the last quarter. Smartleaf Asset Management LLC grew its position in shares of Unifirst by 252.0% in the fourth quarter. Smartleaf Asset Management LLC now owns 345 shares of the textile maker's stock valued at $59,000 after purchasing an additional 247 shares during the period. Finally, Jones Financial Companies Lllp increased its stake in shares of Unifirst by 187.2% during the fourth quarter. Jones Financial Companies Lllp now owns 359 shares of the textile maker's stock worth $61,000 after purchasing an additional 234 shares in the last quarter. 78.17% of the stock is owned by hedge funds and other institutional investors.

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.