David Martin Katz, Executive Vice President of Sales and Marketing at UniFirst Corp (NYSE:UNF), has sold shares in the company totaling $113,337, according to a recent filing with the Securities and Exchange Commission. The shares were sold at a price of $193.08 per share on November 19, 2024.
In addition to the sale, Katz also engaged in other stock transactions on the same day. He acquired shares through a stock appreciation right exercise and other transactions, resulting in additional common stock holdings. Some shares were also withheld by UniFirst to cover tax obligations related to the vesting of restricted stock units, with a total value of $464,001 at prices ranging from $192.67 to $192.83 per share.
These transactions reflect Katz's ongoing management of his equity holdings in UniFirst, a company specializing in personal services.
In other recent news, UniFirst Corporation reported record full-year revenues of $2.427 billion, an 8.7% increase from the prior fiscal year. The company's fourth quarter also saw revenues rise to $639.9 million, an 11.9% increase, while net income stood at $44.6 million. Adjusted EBITDA for the quarter also surged 32.5% year-over-year to $95 million, attributed to an additional week of operations and the acquisition of Clean Uniform.
In addition, UniFirst announced an increase in its quarterly cash dividends for both its Common Stock and Class B Common Stock, reflecting the company's continued financial growth and commitment to delivering shareholder value. The company's board of directors approved the dividend increase, with shareholders set to receive $0.350 per share on Common Stock and $0.280 per share on Class B Common Stock.
Financial analysts at Baird adjusted their price target for UniFirst, increasing it slightly from $199.00 to $200.00, while maintaining a Neutral rating on the stock. This adjustment comes after UniFirst's management indicated challenges in achieving organic growth in fiscal year 2025, and the company's Adjusted EBITDA guidance fell short of the consensus by approximately $10 million.
Looking ahead, UniFirst projects its fiscal 2025 revenue to be between $2.425 billion and $2.445 billion, with EPS ranging from $6.79 to $7.19. The company's Core Laundry Operations, which experienced a solid 4.6% organic growth for the year, are expected to grow between 1.3% and 2.3% in fiscal 2025. Despite these projections, UniFirst faces challenges in customer retention and competitive pricing, which may impact growth.
InvestingPro Insights
To provide additional context to David Martin Katz's recent stock transactions, let's examine some key financial metrics and insights for UniFirst Corp (NYSE:UNF) from InvestingPro.
UniFirst's financial health appears robust, with InvestingPro Data showing a market capitalization of $3.64 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. This growth trajectory is further emphasized by the quarterly revenue growth of 11.89% in Q4 2024, indicating strong business momentum.
InvestingPro Tips highlight that UniFirst holds more cash than debt on its balance sheet, suggesting a solid financial position. This aligns with the company's ability to maintain and grow its dividend payments. In fact, UniFirst has raised its dividend for 7 consecutive years and has maintained dividend payments for an impressive 42 consecutive years. These factors may contribute to investor confidence and potentially explain why executives like Katz manage their equity positions over time.
The company's profitability is also noteworthy, with InvestingPro Tips confirming that UniFirst has been profitable over the last twelve months. This is supported by a gross profit of $847.6 million and an EBITDA of $324.76 million for the last twelve months as of Q4 2024.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for UniFirst, which could provide further depth to understanding the company's financial landscape and future prospects.
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