United Natural Foods (NYSE:UNFI) Reaches New 12-Month High - Still a Buy?

Key Points

• United Natural Foods' stock reached a new 52-week high, trading at $43.19, with analysts providing mixed ratings, including a "Strong Buy" from Zacks Research and a "Sell" from Weiss Ratings.
• The company reported a quarterly revenue of $7.70 billion, surpassing analyst expectations, although it experienced a negative net margin of 0.37% and a decrease in earnings compared to the previous year.
• Insider activity indicates confidence in the company's stock, with significant purchases and the sale of shares by insiders such as Danielle Benedict, who sold a portion of her holdings at an average price of $35.31.

United Natural Foods, Inc. (NYSE:UNFI - Get Free Report)'s stock price hit a new 52-week high on Wednesday . The company traded as high as $43.19 and last traded at $43.05, with a volume of 88087 shares trading hands. The stock had previously closed at $42.03.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on UNFI shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of United Natural Foods in a research report on Tuesday. UBS Group increased their price target on shares of United Natural Foods from $29.00 to $42.00 and gave the company a "buy" rating in a research report on Wednesday, October 1st. BMO Capital Markets increased their price target on shares of United Natural Foods from $36.00 to $48.00 and gave the company an "outperform" rating in a research report on Wednesday, October 1st. Wells Fargo & Company increased their target price on United Natural Foods from $26.00 to $36.00 and gave the stock an "equal weight" rating in a research note on Wednesday, October 1st. Finally, Zacks Research raised United Natural Foods from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 15th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $36.00.

United Natural Foods Stock Up 1.8%

The company has a market capitalization of $2.60 billion, a P/E ratio of -21.96 and a beta of 0.88. The firm's 50 day moving average price is $31.07 and its two-hundred day moving average price is $27.69. The company has a current ratio of 1.32, a quick ratio of 0.51 and a debt-to-equity ratio of 1.20.

United Natural Foods (NYSE:UNFI - Get Free Report) last issued its quarterly earnings results on Tuesday, September 30th. The company reported ($0.11) earnings per share for the quarter, topping the consensus estimate of ($0.18) by $0.07. The company had revenue of $7.70 billion during the quarter, compared to analysts' expectations of $7.61 billion. United Natural Foods had a negative net margin of 0.37% and a positive return on equity of 2.74%. The business's quarterly revenue was down 5.6% on a year-over-year basis. During the same period last year, the business earned $0.01 EPS. Equities research analysts forecast that United Natural Foods, Inc. will post 0.76 EPS for the current year.

Insider Activity at United Natural Foods

In other news, insider Danielle Benedict sold 11,655 shares of the stock in a transaction that occurred on Tuesday, September 30th. The stock was sold at an average price of $35.31, for a total value of $411,538.05. Following the completion of the sale, the insider owned 89,544 shares of the company's stock, valued at approximately $3,161,798.64. This represents a 11.52% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On United Natural Foods

Several large investors have recently made changes to their positions in the stock. Nuveen LLC acquired a new stake in United Natural Foods during the 1st quarter valued at $24,171,000. Arrowstreet Capital Limited Partnership lifted its holdings in United Natural Foods by 196.6% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 925,927 shares of the company's stock valued at $21,583,000 after purchasing an additional 613,790 shares during the last quarter. Invesco Ltd. lifted its holdings in United Natural Foods by 20.7% during the 2nd quarter. Invesco Ltd. now owns 2,544,315 shares of the company's stock valued at $59,308,000 after purchasing an additional 436,680 shares during the last quarter. American Century Companies Inc. lifted its holdings in shares of United Natural Foods by 20.6% during the first quarter. American Century Companies Inc. now owns 2,433,948 shares of the company's stock worth $66,666,000 after buying an additional 415,700 shares in the last quarter. Finally, Cubist Systematic Strategies LLC lifted its holdings in shares of United Natural Foods by 428.7% during the first quarter. Cubist Systematic Strategies LLC now owns 270,262 shares of the company's stock worth $7,402,000 after buying an additional 219,145 shares in the last quarter. Institutional investors and hedge funds own 87.63% of the company's stock.

About United Natural Foods

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.

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