WILMINGTON, MA—Insiders at UniFirst Corp (NYSE:UNF) recently sold shares worth approximately $6.17 million, according to a recent filing. The transactions took place over several days in November 2024, with shares sold at prices ranging from $190.05 to $196.65.
The Ronald D. Croatti Trust - 1993, with Carol Croatti and Matthew Croatti as trustees, executed these sales under a trading plan compliant with Rule 10b5-1(c). The trust, a significant shareholder in UniFirst, had previously converted Class B common stock into common stock in October, totaling 31,860 shares.
The sales were spread across multiple transactions, with notable sales occurring on November 19 and 20. On November 19, the trust sold 2,702 shares at a weighted average price of $192.71 and 2,268 shares at $193.50. The following day, they sold 3,011 shares at $190.05 and 2,272 shares at $190.89, among other transactions.
These transactions are part of a broader strategy by the trust, which maintains a significant position in UniFirst through various partnerships and direct holdings. Despite these sales, the trust continues to hold a substantial number of shares in the company.
In other recent news, UniFirst Corporation reported a significant increase in its quarterly cash dividends for both its Common Stock and Class B Common Stock. This decision is indicative of the company's continued financial growth and commitment to shareholder value. Additionally, UniFirst reported record full-year revenues of $2.427 billion, an 8.7% increase from the prior fiscal year, and fourth quarter revenues of $639.9 million, an 11.9% increase.
Analysts at Baird have adjusted their price target for UniFirst, raising it slightly from $199.00 to $200.00, while maintaining a Neutral rating on the stock. This adjustment comes as UniFirst's management indicated challenges in achieving organic growth in fiscal year 2025. The company's fiscal 2025 revenue is projected to be between $2.425 billion and $2.445 billion, with EPS ranging from $6.79 to $7.19. Despite these projections, UniFirst faces challenges in customer retention and competitive pricing, which may impact growth. These are the recent developments in the company's financial standing.
InvestingPro Insights
To provide additional context to the recent insider sales at UniFirst Corp (NYSE:UNF), let's examine some key financial metrics and insights from InvestingPro.
UniFirst's financial health appears robust, with InvestingPro data showing a market capitalization of $3.63 billion. The company's revenue for the last twelve months as of Q4 2024 stood at $2.43 billion, with a notable revenue growth of 8.7% over the same period.
An InvestingPro Tip highlights that UniFirst holds more cash than debt on its balance sheet, suggesting a strong financial position. This could provide reassurance to investors in light of the recent insider sales, as it indicates the company has ample liquidity to fund operations and potential growth initiatives.
Another relevant InvestingPro Tip notes that UniFirst has maintained dividend payments for 42 consecutive years. This long-standing commitment to shareholder returns aligns with the company's stable financial performance and may offset concerns about insider selling.
The company's P/E ratio of 25.21 and Price to Book ratio of 1.73 suggest a moderate valuation relative to its earnings and book value. Interestingly, UniFirst is trading at a low P/E ratio relative to its near-term earnings growth, according to an InvestingPro Tip, which could indicate potential undervaluation.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 8 more InvestingPro Tips available for UniFirst, providing a deeper understanding of the company's financial health and market position.
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