Pivotal Research reissued their sell rating on shares of United Natural Foods (NASDAQ:UNFI) in a report published on Tuesday. The firm currently has a $18.00 price target on the stock.
“We reiterate our price target of $18 which remains highly sensitive based on target debt and EBITDA levels. The recent operational missteps reflected in Supervalu’s latest financials need to be better accounted for in guidance. Based on UNFI’s high leverage and earnings volatility, we estimate $25 million of variability in annual EBITDA has a $3/share corresponding impact on the price target. Consensus estimates remain way too high for FY19 – Based on the close of the stock market on Dec. 5, UNFI is now set to report 1Q19 results after the close on Thu., 12/6 followed by an earnings call at 5 pm EST (dial in #: 877.682.3423 and conf. ID: 6861809). Ahead of the print, UNFI has announced the sale of Hornbacher’s retail banner in Fargo ND. The sale includes a long-term supply agreement with Supervalu.”,” Pivotal Research’s analyst wrote.
Other research analysts have also recently issued reports about the company. BMO Capital Markets set a $28.00 price target on United Natural Foods and gave the company a hold rating in a research note on Friday, September 21st. Loop Capital set a $50.00 price target on United Natural Foods and gave the company a buy rating in a research note on Friday, September 21st. Morgan Stanley dropped their price target on United Natural Foods from $41.00 to $27.00 and set a sell rating for the company in a research note on Monday, September 24th. Buckingham Research cut United Natural Foods from a buy rating to a neutral rating and dropped their price target for the company from $41.00 to $26.00 in a research note on Wednesday, October 24th. Finally, Royal Bank of Canada upgraded United Natural Foods from an underperform rating to a sector perform rating and dropped their price target for the company from $36.00 to $32.00 in a research note on Monday, September 24th. Six research analysts have rated the stock with a sell rating, eleven have given a hold rating and four have given a buy rating to the company. The stock presently has an average rating of Hold and an average price target of $32.11.
Shares of UNFI opened at $14.88 on Tuesday. United Natural Foods has a 52 week low of $14.45 and a 52 week high of $52.55. The firm has a market capitalization of $1.01 billion, a PE ratio of 6.45, a PEG ratio of 0.80 and a beta of 1.62. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.56 and a quick ratio of 0.93.
United Natural Foods (NASDAQ:UNFI) last announced its quarterly earnings results on Thursday, December 6th. The company reported $0.59 EPS for the quarter, missing the Zacks’ consensus estimate of $0.73 by ($0.14). United Natural Foods had a net margin of 1.09% and a return on equity of 8.61%. The firm had revenue of $2.87 billion during the quarter, compared to the consensus estimate of $2.70 billion. During the same quarter in the previous year, the company posted $0.60 earnings per share. The firm’s revenue was up 16.7% on a year-over-year basis. As a group, analysts expect that United Natural Foods will post 3.44 EPS for the current year.
In related news, Director James P. Heffernan sold 3,820 shares of the stock in a transaction on Tuesday, October 2nd. The stock was sold at an average price of $29.50, for a total value of $112,690.00. Following the completion of the sale, the director now directly owns 6,960 shares in the company, valued at $205,320. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.50% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of UNFI. Thompson Siegel & Walmsley LLC increased its holdings in United Natural Foods by 96.1% in the third quarter. Thompson Siegel & Walmsley LLC now owns 905,654 shares of the company’s stock valued at $27,125,000 after purchasing an additional 443,915 shares during the period. Millennium Management LLC increased its holdings in United Natural Foods by 1,619.0% in the second quarter. Millennium Management LLC now owns 380,491 shares of the company’s stock valued at $16,232,000 after purchasing an additional 405,539 shares during the period. Kiltearn Partners LLP increased its holdings in United Natural Foods by 9.7% in the third quarter. Kiltearn Partners LLP now owns 4,478,758 shares of the company’s stock valued at $134,139,000 after purchasing an additional 396,554 shares during the period. Royce & Associates LP increased its holdings in United Natural Foods by 127.5% in the third quarter. Royce & Associates LP now owns 692,100 shares of the company’s stock valued at $20,728,000 after purchasing an additional 387,900 shares during the period. Finally, BlackRock Inc. increased its holdings in United Natural Foods by 6.1% in the second quarter. BlackRock Inc. now owns 5,888,566 shares of the company’s stock valued at $251,204,000 after purchasing an additional 340,578 shares during the period. Institutional investors and hedge funds own 97.28% of the company’s stock.
United Natural Foods Company Profile
United Natural Foods, Inc, together with its subsidiaries, distributes natural, organic, and specialty foods and non-food products in the United States and Canada. The company operates through three divisions: Wholesale, Retail, and Manufacturing and Branded Products. The Wholesale division offers grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products, and personal care products.
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