UniFirst (NYSE:UNF) Trading Up 4.1% After Better-Than-Expected Earnings

UniFirst Co. (NYSE:UNF)’s stock price rose 4.1% during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $214.62 and last traded at $213.00. Approximately 61,892 shares were traded during trading, a decline of 78% from the average daily volume of 286,318 shares. The stock had previously closed at $204.69.

The textile maker reported $2.31 EPS for the quarter, topping the consensus estimate of $2.22 by $0.09. The firm had revenue of $604.91 million for the quarter, compared to the consensus estimate of $606.60 million. UniFirst had a net margin of 5.99% and a return on equity of 7.47%. The business’s revenue was up 1.9% compared to the same quarter last year. During the same period last year, the firm posted $2.26 earnings per share.

UniFirst Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 3rd. Investors of record on Friday, December 6th were paid a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 0.65%. This is an increase from UniFirst’s previous quarterly dividend of $0.33. The ex-dividend date was Friday, December 6th. UniFirst’s payout ratio is presently 18.02%.

Wall Street Analysts Forecast Growth

UNF has been the topic of several analyst reports. UBS Group lifted their target price on shares of UniFirst from $190.00 to $235.00 and gave the stock a “neutral” rating in a research note on Thursday. Robert W. Baird boosted their price objective on shares of UniFirst from $199.00 to $200.00 and gave the company a “neutral” rating in a research report on Thursday, October 24th. Finally, StockNews.com downgraded shares of UniFirst from a “strong-buy” rating to a “buy” rating in a research report on Wednesday. One research analyst has rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, UniFirst currently has an average rating of “Hold” and an average target price of $197.50.

Insider Buying and Selling at UniFirst

In other news, CEO Steven S. Sintros sold 3,207 shares of the company’s stock in a transaction dated Tuesday, November 19th. The shares were sold at an average price of $193.04, for a total transaction of $619,079.28. Following the completion of the sale, the chief executive officer now owns 22,571 shares of the company’s stock, valued at $4,357,105.84. This represents a 12.44 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP David Martin Katz sold 587 shares of the company’s stock in a transaction dated Tuesday, November 19th. The shares were sold at an average price of $193.08, for a total transaction of $113,337.96. Following the sale, the vice president now directly owns 5,625 shares of the company’s stock, valued at $1,086,075. The trade was a 9.45 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 13,294 shares of company stock worth $2,546,632. Company insiders own 0.86% of the company’s stock.

Institutional Investors Weigh In On UniFirst

Hedge funds and other institutional investors have recently made changes to their positions in the business. Quarry LP increased its holdings in UniFirst by 1,627.3% in the 2nd quarter. Quarry LP now owns 190 shares of the textile maker’s stock worth $33,000 after acquiring an additional 179 shares in the last quarter. GAMMA Investing LLC increased its holdings in UniFirst by 60.5% in the 3rd quarter. GAMMA Investing LLC now owns 183 shares of the textile maker’s stock worth $36,000 after acquiring an additional 69 shares in the last quarter. First Horizon Advisors Inc. increased its holdings in UniFirst by 16.5% in the 3rd quarter. First Horizon Advisors Inc. now owns 367 shares of the textile maker’s stock worth $73,000 after acquiring an additional 52 shares in the last quarter. TD Private Client Wealth LLC increased its holdings in UniFirst by 291.6% in the 3rd quarter. TD Private Client Wealth LLC now owns 466 shares of the textile maker’s stock worth $93,000 after acquiring an additional 347 shares in the last quarter. Finally, Eastern Bank purchased a new stake in UniFirst in the 3rd quarter worth approximately $109,000. Hedge funds and other institutional investors own 78.17% of the company’s stock.

UniFirst Stock Performance

The company’s fifty day moving average is $190.78 and its 200-day moving average is $186.71. The company has a market capitalization of $4.00 billion, a PE ratio of 27.69 and a beta of 0.87.

UniFirst Company Profile

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.