US Foods (NYSE:USFD) Trading Down 5.2% on Disappointing Earnings

US Foods Holding Corp. (NYSE:USFD)’s share price dropped 5.2% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $66.56 and last traded at $66.26. Approximately 1,271,651 shares changed hands during mid-day trading, a decline of 27% from the average daily volume of 1,740,905 shares. The stock had previously closed at $69.91.

The company reported $0.78 EPS for the quarter, missing the consensus estimate of $0.79 by ($0.01). US Foods had a return on equity of 14.15% and a net margin of 1.54%.

Analysts Set New Price Targets

USFD has been the topic of several research analyst reports. Melius Research upgraded US Foods to a “strong-buy” rating in a report on Wednesday, December 18th. UBS Group boosted their price target on shares of US Foods from $67.00 to $77.00 and gave the stock a “buy” rating in a research note on Friday, November 8th. Morgan Stanley raised their price objective on shares of US Foods from $76.00 to $82.00 and gave the company an “overweight” rating in a research note on Tuesday, January 21st. Truist Financial upped their target price on shares of US Foods from $74.00 to $78.00 and gave the stock a “buy” rating in a research note on Thursday, January 16th. Finally, Barclays raised their price target on shares of US Foods from $71.00 to $78.00 and gave the company an “overweight” rating in a research report on Friday, November 8th. One investment analyst has rated the stock with a hold rating, eleven have given a buy rating and two have assigned a strong buy rating to the company’s stock. According to data from MarketBeat, US Foods presently has a consensus rating of “Buy” and an average target price of $68.92.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Retirement Systems of Alabama boosted its holdings in US Foods by 5.4% in the third quarter. Retirement Systems of Alabama now owns 348,979 shares of the company’s stock valued at $21,462,000 after purchasing an additional 17,897 shares in the last quarter. State Street Corp lifted its position in shares of US Foods by 4.7% during the 3rd quarter. State Street Corp now owns 7,045,514 shares of the company’s stock worth $433,299,000 after buying an additional 316,061 shares during the last quarter. Oppenheimer Asset Management Inc. boosted its holdings in shares of US Foods by 121.6% in the 3rd quarter. Oppenheimer Asset Management Inc. now owns 51,452 shares of the company’s stock valued at $3,164,000 after buying an additional 28,232 shares in the last quarter. Jag Capital Management LLC boosted its holdings in shares of US Foods by 3,175.1% in the 3rd quarter. Jag Capital Management LLC now owns 169,227 shares of the company’s stock valued at $10,407,000 after buying an additional 164,060 shares in the last quarter. Finally, Venturi Wealth Management LLC grew its position in shares of US Foods by 72.0% in the 3rd quarter. Venturi Wealth Management LLC now owns 657 shares of the company’s stock valued at $40,000 after buying an additional 275 shares during the last quarter. 98.76% of the stock is owned by institutional investors and hedge funds.

US Foods Price Performance

The company has a current ratio of 1.19, a quick ratio of 0.72 and a debt-to-equity ratio of 1.01. The stock has a market capitalization of $15.43 billion, a price-to-earnings ratio of 28.62, a price-to-earnings-growth ratio of 0.95 and a beta of 1.67. The company’s 50 day moving average is $69.06 and its 200 day moving average is $63.87.

About US Foods

US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations.