US Foods Holding Corp. (NYSE: USFD) stock jumped 0.90% on Thursday to $39.04 against a previous-day closing price of $38.69. With 1.79 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.64 million shares. During the session, the Food Distribution company that operates in wider Consumer Defensive sector, reached to the highest price of $39.22 whereas the lowest price it dropped to was $38.74. The 52-week range on USFD shows that it touched its highest point at $44.52 and its lowest point at $25.49 during that stretch. It currently has a 1-year price target of $50.00. Beta for the stock currently stands at 1.51.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of USFD was down-trending over the past week, with a drop of -0.51%, but this was down by -2.06% over a month. Three-month performance dropped to -6.47% while six-month performance rose 9.94%. The stock gained 28.25% in the past year, while it has gained 14.76% so far this year. A look at the trailing 12-month EPS for USFD yields 1.79 with Next year EPS estimates of 3.21. For the next quarter, that number is 0.69. This implies an EPS growth rate of 87.60% for this year and 22.10% for next year. EPS is expected to grow by 21.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -3.40%.
Float and Shares Shorts:
At present, 246.90 million USFD shares are outstanding with a float of 245.30 million shares on hand for trading. On Aug 14, 2023, short shares totaled 4.78 million, which was 1.94% higher than short shares on Jul 13, 2023. In addition to Mr. Dirk J. Locascio as the firm’s Exec. VP & CFO, Mr. John A. Tonnison serves as its Exec. VP, Chief Information & Digital Officer.
Through their ownership of 102.67% of USFD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.89% of USFD, in contrast to 48.26% held by mutual funds. Shares owned by individuals account for 17.41%. As the largest shareholder in USFD with 9.43% of the stake, The Vanguard Group, Inc. holds 22,107,156 shares worth 22,107,156. A second-largest stockholder of USFD, Sachem Head Capital Management LP, holds 18,932,877 shares, controlling over 8.08% of the firm’s shares. Boston Partners Global Investors, is the third largest shareholder in USFD, holding 18,055,981 shares or 7.71% stake. With a 3.11% stake in USFD, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 7,275,133 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.97% of USFD stock, is the second-largest Mutual Fund holder. It holds 6,953,855 shares valued at 297.14 million. Vanguard Small Cap Index Fund holds 2.47% of the stake in USFD, owning 5,792,440 shares worth 247.51 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 30, 2023, USFD reported revenue of $8.83B and operating income of $150.00M. The EBITDA in the recently reported quarter was $247.00M and diluted EPS was $0.27.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for USFD since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With USFD analysts setting a high price target of $54.00 and a low target of $44.00, the average target price over the next 12 months is $49.93. Based on these targets, USFD could surge 38.32% to reach the target high and rise by 12.7% to reach the target low. Reaching the average price target will result in a growth of 27.89% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded USFD stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 3,307 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 60 over the past year. The total number of shares bought during that period was 792,350 while 313,346 shares were sold.