US Foods (NYSE:USFD) Downgraded by Zacks Research to Hold

Key Points

• Zacks downgraded US Foods (NYSE:USFD) from "strong-buy" to "hold", though analysts remain generally positive with 10 Buy vs. 3 Hold ratings and a MarketBeat consensus target of $107.33.
• US Foods beat Q4 EPS expectations with $1.04 (vs. $1.01 consensus) and set FY2026 guidance of 4.696–4.935 EPS; the stock trades near $91.78 with a $20.21B market cap and a PE of 31.22.
• Insider James D. Works Jr. sold 65,737 shares for about $6.34M, while institutional investors now own 98.76% of the company after sizable position increases by several large funds.

US Foods (NYSE:USFD - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

Several other research analysts also recently commented on USFD. BMO Capital Markets lifted their target price on shares of US Foods from $95.00 to $115.00 and gave the stock an "outperform" rating in a report on Friday, February 13th. Deutsche Bank Aktiengesellschaft set a $111.00 target price on shares of US Foods and gave the stock a "buy" rating in a report on Friday, February 13th. Citigroup lifted their target price on shares of US Foods from $95.00 to $118.00 and gave the stock a "buy" rating in a report on Friday, February 13th. Wall Street Zen upgraded shares of US Foods from a "hold" rating to a "buy" rating in a report on Saturday, April 4th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of US Foods in a report on Monday, December 29th. Ten analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $107.33.

US Foods Stock Performance

Shares of USFD opened at $91.78 on Monday. The company has a market capitalization of $20.21 billion, a PE ratio of 31.22, a price-to-earnings-growth ratio of 1.14 and a beta of 0.98. US Foods has a one year low of $61.65 and a one year high of $102.13. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.16 and a quick ratio of 0.68. The company's fifty day moving average price is $92.84 and its 200 day moving average price is $82.85.

US Foods (NYSE:USFD - Get Free Report) last announced its earnings results on Thursday, February 12th. The company reported $1.04 EPS for the quarter, topping the consensus estimate of $1.01 by $0.03. The firm had revenue of $9.80 billion for the quarter, compared to the consensus estimate of $9.90 billion. US Foods had a net margin of 1.71% and a return on equity of 18.74%. The business's quarterly revenue was up 3.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.84 EPS. US Foods has set its FY 2026 guidance at 4.696-4.935 EPS. As a group, analysts expect that US Foods will post 4.53 earnings per share for the current year.

Insider Activity

In other news, insider James David Works, Jr. sold 65,737 shares of the business's stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $96.52, for a total transaction of $6,344,935.24. Following the transaction, the insider owned 88,176 shares in the company, valued at approximately $8,510,747.52. The trade was a 42.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.74% of the company's stock.

Institutional Trading of US Foods

Several institutional investors have recently made changes to their positions in USFD. Price T Rowe Associates Inc. MD boosted its position in shares of US Foods by 412.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,165,611 shares of the company's stock valued at $313,755,000 after acquiring an additional 3,353,396 shares in the last quarter. Bank of Montreal Can boosted its position in shares of US Foods by 8,056.1% during the 4th quarter. Bank of Montreal Can now owns 2,866,721 shares of the company's stock valued at $215,921,000 after acquiring an additional 2,831,573 shares in the last quarter. Norges Bank acquired a new stake in shares of US Foods during the 4th quarter valued at about $192,849,000. Wellington Management Group LLP boosted its position in shares of US Foods by 14.2% during the 3rd quarter. Wellington Management Group LLP now owns 12,875,970 shares of the company's stock valued at $986,557,000 after acquiring an additional 1,599,033 shares in the last quarter. Finally, Capital World Investors boosted its position in shares of US Foods by 10.3% during the 4th quarter. Capital World Investors now owns 12,862,100 shares of the company's stock valued at $968,773,000 after acquiring an additional 1,197,360 shares in the last quarter. 98.76% of the stock is currently owned by institutional investors and hedge funds.

US Foods Company Profile

US Foods NYSE: USFD is a leading foodservice distributor in the United States that supplies a wide range of products and services to professional food operators. The company provides fresh, frozen and dry food items as well as non-food restaurant supplies and kitchen equipment. Its customer base includes independent restaurants, multi-unit chains, healthcare and senior living facilities, hospitality businesses, government and educational institutions, and other foodservice operators.

Beyond commodity and branded food products, US Foods offers value-added solutions designed to help customers run their businesses.

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