.jpg "United Natural Foods (NASDAQ: UNFI)")
In a report released today, Rupesh Parikh from Oppenheimer reiterated a Hold rating on United Natural Foods (NASDAQ: UNFI). The company’s shares closed yesterday at $41.01.
Parikh said:
“Following a more than 10% decline in UNFI shares over the past few days, we spent time revisiting our model, investment thesis, and management’s gross margin commentary. We remain bullish on the top-line demand drivers for UNFI and are closely watching internal adjustments to manage through the rapidly improving demand backdrop for the company (internally and externally driven). Sales in the latest quarter increased 11.8% even with minimal food inflation. As we look forward, we believe value investors likely remain attracted to UNFI’s prospects, but stronger cash generation could be necessary to rekindle interest for this group of investors. With the shares now trading consistent with historical trough valuations and Street forecasts incorporating margin headwinds, we believe UNFI shares have likely bottomed.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 15.9% and a 62.4% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, Wal-Mart Stores Inc, and Sprouts Farmers.
Currently, the analyst consensus on United Natural Foods is Hold and the average price target is $44.60, representing an 8.8% upside.
In a report issued on June 7, Stephens also maintained a Hold rating on the stock with a $43 price target.
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The company has a one-year high of $52.69 and a one-year low of $29.53. Currently, United Natural Foods has an average volume of 478.9K.
Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of UNFI in relation to earlier this year. Most recently, in March 2018, James Heffernan, a Director at UNFI bought 3,990 shares for a total of $97,915.
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United Natural Foods, Inc. engages in the distribution of natural, organic, and specialty foods and related products. It operates through the Wholesale and Other segments. The Wholesale segment distributes nutritional supplements, personal care items and organic products. The Others segment engages in other activities of the firm.
