UniFirst Sees Unusually Large Options Volume (NYSE:UNF)

UniFirst Corporation (NYSE:UNF) was the target of some unusual options trading activity on Friday. Stock investors purchased 3,139 call options on the company. This represents an increase of approximately 618% compared to the average volume of 437 call options.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in UniFirst in the second quarter valued at $580,008,000. State Street Corp raised its stake in shares of UniFirst by 2.9% during the 2nd quarter. State Street Corp now owns 584,085 shares of the textile maker’s stock valued at $154,467,000 after buying an additional 16,208 shares during the last quarter. Bank of America Corp DE raised its stake in shares of UniFirst by 4.3% during the 2nd quarter. Bank of America Corp DE now owns 158,466 shares of the textile maker’s stock valued at $41,908,000 after buying an additional 6,541 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund raised its stake in shares of UniFirst by 27.5% during the 3rd quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 155,916 shares of the textile maker’s stock valued at $39,060,000 after buying an additional 33,636 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in shares of UniFirst in the 2nd quarter valued at about $30,584,000. 78.17% of the stock is currently owned by institutional investors and hedge funds.

UniFirst Stock Performance

NYSE UNF traded down $5.71 during trading hours on Friday, reaching $235.78. The stock had a trading volume of 323,681 shares, compared to its average volume of 403,150. UniFirst has a 52-week low of $154.00 and a 52-week high of $306.67. The stock has a fifty day moving average of $259.01 and a 200 day moving average of $261.97. The stock has a market cap of $4.27 billion, a P/E ratio of 39.23 and a beta of 0.65.

UniFirst (NYSE:UNF) last posted its quarterly earnings results on Wednesday, October 21st. The textile maker reported $1.90 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.04 by ($0.14). UniFirst had a return on equity of 6.65% and a net margin of 4.34%. The business had revenue of $645.01 million for the quarter, compared to analysts’ expectations of $634.40 million. During the same period in the prior year, the business posted $2.23 earnings per share. The business’s quarterly revenue was up 5.0% compared to the same quarter last year. On average, equities research analysts forecast that UniFirst will post 8.52 EPS for the current year.

UniFirst Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Friday, November 13th will be paid a $0.3750 dividend. The ex-dividend date is Friday, November 13th. This is an increase from UniFirst’s previous quarterly dividend of $0.3650. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.6%. UniFirst’s dividend payout ratio (DPR) is currently 24.29%.

Wall Street Analyst Weigh In

UNF has been the subject of several research reports. Zacks Research upgraded shares of UniFirst from a “hold” rating to a “strong-buy” rating in a research note on Thursday, October 22nd. Weiss Ratings reissued a “hold (c+)” rating on shares of UniFirst in a research report on Tuesday, October 6th. Finally, Wall Street Zen raised UniFirst to a “hold” rating in a research report on Saturday. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $246.67.

UniFirst Company Profile

UniFirst Corporation provides uniform rental and workplace services to businesses across a range of industries. Its programs include workwear selection, laundering, inspection, repair, and scheduled delivery, as well as sales of uniforms and related apparel. The company also supplies facility services such as floor mats, towels, restroom products, and first aid and safety supplies. Through specialized operations, UniFirst provides cleanroom garments and related services for businesses that require controlled environments.