Wall Street Zen Downgrades US Foods (NYSE:USFD) to Buy

Key Points

• Wall Street Zen downgraded US Foods from a "strong-buy" rating to a "buy" rating in a recent report.
• Several brokerages have raised their price targets for US Foods, with Barclays increasing it from $85.00 to $95.00 and UBS Group from $84.00 to $96.00.
• US Foods reported quarterly earnings of $1.19 EPS, surpassing estimates, and set its FY 2025 guidance at 3.764-3.874 EPS.

US Foods (NYSE:USFD - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report issued on Friday.

Several other brokerages have also recently commented on USFD. Barclays increased their price target on US Foods from $85.00 to $95.00 and gave the company an "overweight" rating in a research report on Wednesday, June 4th. Citigroup started coverage on US Foods in a research report on Thursday, May 22nd. They set a "buy" rating and a $95.00 price target on the stock. Morgan Stanley reissued an "overweight" rating and set a $89.00 target price (up from $84.00) on shares of US Foods in a report on Monday, July 14th. Wells Fargo & Company reissued an "overweight" rating and set a $87.00 target price (up from $80.00) on shares of US Foods in a report on Friday, August 8th. Finally, UBS Group boosted their target price on US Foods from $84.00 to $96.00 and gave the stock a "buy" rating in a report on Monday, July 28th. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $80.55.

US Foods Stock Up 0.8%

Shares of US Foods stock opened at $78.0320 on Friday. The business's 50 day simple moving average is $79.66 and its 200 day simple moving average is $72.81. US Foods has a 52-week low of $56.47 and a 52-week high of $85.11. The firm has a market cap of $17.57 billion, a PE ratio of 33.35, a P/E/G ratio of 1.09 and a beta of 1.44. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.73 and a current ratio of 1.17.

US Foods (NYSE:USFD - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $1.19 EPS for the quarter, beating the consensus estimate of $1.14 by $0.05. US Foods had a return on equity of 16.86% and a net margin of 1.43%.The firm had revenue of $10.08 billion during the quarter, compared to analysts' expectations of $10.17 billion. During the same period in the prior year, the firm posted $0.93 earnings per share. The business's quarterly revenue was up 3.8% compared to the same quarter last year. US Foods has set its FY 2025 guidance at 3.764-3.874 EPS. On average, analysts predict that US Foods will post 3.59 earnings per share for the current fiscal year.

Insider Activity

In other US Foods news, EVP Dirk J. Locascio sold 7,500 shares of the stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $80.00, for a total transaction of $600,000.00. Following the transaction, the executive vice president owned 115,077 shares in the company, valued at $9,206,160. This represents a 6.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On US Foods

Hedge funds and other institutional investors have recently made changes to their positions in the company. Colonial Trust Co SC acquired a new position in shares of US Foods in the 4th quarter valued at approximately $25,000. GeoWealth Management LLC raised its position in shares of US Foods by 94.5% in the 4th quarter. GeoWealth Management LLC now owns 389 shares of the company's stock valued at $26,000 after buying an additional 189 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in shares of US Foods in the 1st quarter valued at approximately $31,000. True Wealth Design LLC raised its position in shares of US Foods by 153.6% in the 4th quarter. True Wealth Design LLC now owns 492 shares of the company's stock valued at $33,000 after buying an additional 298 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its position in shares of US Foods by 120.1% in the 2nd quarter. Geneos Wealth Management Inc. now owns 482 shares of the company's stock valued at $37,000 after buying an additional 263 shares in the last quarter. 98.76% of the stock is currently owned by institutional investors and hedge funds.

About US Foods

US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations.

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