UniFirst (NYSE:UNF) Stock Price Up 4.1% on Strong Earnings

Shares of UniFirst Co. (NYSE:UNF) were up 4.1% during mid-day trading on Wednesday following a stronger than expected earnings report. 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 earnings per share for the quarter, topping analysts’ consensus estimates of $2.22 by $0.09. UniFirst had a net margin of 5.99% and a return on equity of 7.47%. The company had revenue of $604.91 million during the quarter, compared to the consensus estimate of $606.60 million. During the same period in the previous year, the firm posted $2.26 earnings per share. The company’s revenue was up 1.9% on a year-over-year basis.

UniFirst Increases Dividend

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

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on UNF. Robert W. Baird boosted their target price on UniFirst from $199.00 to $200.00 and gave the stock a “neutral” rating in a research report on Thursday, October 24th. StockNews.com cut UniFirst from a “strong-buy” rating to a “buy” rating in a report on Wednesday. One analyst has rated the stock with a sell rating, three have assigned a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $186.25.

Insider Buying and Selling at UniFirst

In related news, major shareholder The Ronald D. Croatti Trust – 1 sold 9,500 shares of UniFirst stock in a transaction that occurred on Wednesday, November 20th. The shares were sold at an average price of $190.97, for a total transaction of $1,814,215.00. Following the transaction, the insider now owns 17,390 shares of the company’s stock, valued at $3,320,968.30. This trade represents a 35.33 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP David Martin Katz sold 587 shares of the company’s stock in a transaction that occurred on Tuesday, November 19th. The shares were sold at an average price of $193.08, for a total transaction of $113,337.96. Following the completion of 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 sold 13,294 shares of company stock worth $2,546,632. Insiders own 0.86% of the company’s stock.

Institutional Trading of UniFirst

Several hedge funds have recently added to or reduced their stakes in the business. First Horizon Advisors Inc. increased its holdings in shares of UniFirst by 16.5% in the third 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. FMR LLC grew its position in shares of UniFirst by 3.1% in the 3rd quarter. FMR LLC now owns 1,936 shares of the textile maker’s stock valued at $385,000 after purchasing an additional 58 shares during the period. GAMMA Investing LLC increased its stake in UniFirst by 60.5% during the 3rd quarter. GAMMA Investing LLC now owns 183 shares of the textile maker’s stock worth $36,000 after purchasing an additional 69 shares in the last quarter. Arizona State Retirement System raised its holdings in UniFirst by 1.9% during the 2nd quarter. Arizona State Retirement System now owns 4,231 shares of the textile maker’s stock worth $726,000 after buying an additional 78 shares during the period. Finally, Blair William & Co. IL lifted its stake in UniFirst by 0.6% in the second quarter. Blair William & Co. IL now owns 21,491 shares of the textile maker’s stock valued at $3,686,000 after buying an additional 118 shares in the last quarter. Institutional investors and hedge funds own 78.17% of the company’s stock.

UniFirst Stock Up 5.1 %

The company’s fifty day moving average price is $190.08 and its two-hundred day moving average price is $186.51. The company has a market cap of $4.00 billion, a price-to-earnings 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.