WILMINGTON, MA — UniFirst Corp (NYSE: ) insiders recently sold about $6.17 million worth of shares, according to a recent filing. The transaction took place over several days in November 2024, with shares trading 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 business plan that complied with Rule 10b5-1(c). The trust, which is a significant shareholder in UniFirst, previously converted Class B common stock into common stock in October, totaling 31,860 shares.
The sale was spread over several transactions, with notable sales occurring on November 19 and 20. On November 19, the trust sold 2,702 shares at an average price of $192.71 and 2,268 shares at $193.50. The next day, he 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 of the trust, which maintains a significant position in UniFirst through various partnerships and direct holdings. Despite these sales, the trust retains a substantial number of shares in the company.
In other recent news, UniFirst Corporation reported a significant increase in its quarterly cash dividend 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 revenue of $2.427 billion, an 8.7% increase from the previous fiscal year, and fourth quarter revenue of $639.9 million, an 11.9% increase.
Analysts at Baird have adjusted their price target for UniFirst, increasing it from $199.00 to $200.00, while maintaining a neutral rating on the stock. The adjustment comes as UniFirst’s management has identified challenges in achieving organic growth in fiscal 2025. The company’s fiscal 2025 revenue is estimated 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 could impact growth. These are recent developments in the financial condition of the company.
InvestingPro Insights
To provide additional context to the recent insider selloff in UniFirst Corp (NYSE:UNF), let’s review some key financial metrics and insights from InvestingPro.
UniFirst’s financial health appears strong, with InvestingPro data showing a market capitalization of $3.63 billion. The company’s revenue for the trailing twelve months as of Q4 2024 was $2.43 billion, with a remarkable revenue growth of 8.7% over the same period.
An Investing Pro Tip highlights that Unifirst has more cash than debt on its balance sheet, suggesting a strong financial position. is This may provide reassurance to investors in light of the recent insider selling, as it indicates that the company has funds. There is sufficient liquidity for operations and potential growth initiatives.
Another related InvestingPro tip notes that UniFirst has maintained a dividend payout for 42 consecutive years. This long-standing commitment to shareholder returns is consistent with the company’s stable financial performance and may alleviate concerns about insider sales.
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, according to Investing ProTip, UniFirst is trading at a low P/E ratio relative to its near-term earnings growth, which could indicate a potential undervaluation.
For investors seeking a 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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