Steven Sintros, President and CEO of UniFirst Corp (NYSE:UNF), recently sold shares of the company's common stock totaling $619,088. The transactions occurred on November 19, 2024, with sales prices ranging from $192.6 to $194.39 per share.
Following these transactions, Sintros owns 22,685 shares directly. Additionally, there were shares withheld by the company to satisfy tax obligations related to restricted stock units, amounting to a total of $339,380 at a price of $192.83 per share.
Sintros also received restricted stock units, which vested based on performance criteria, but these transactions were recorded without any monetary exchange. The CEO's transactions were conducted as part of a pre-established trading plan intended to comply with Rule 10b5-1(c).
In other recent news, UniFirst Corporation has reported a record full-year revenue of $2.427 billion, marking an 8.7% increase from the previous fiscal year. The company's fourth quarter also saw a significant surge with revenues rising 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. These recent developments are attributed to an additional week of operations and the acquisition of Clean Uniform.
In terms of future expectations, 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. However, Specialty Garments revenues are anticipated to decrease by 4%.
In other developments, UniFirst announced an increase in its quarterly cash dividends for both its Common Stock and Class B Common Stock. Financial analysts at Baird have 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 as 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.
InvestingPro Insights
As UniFirst Corp's CEO Steven Sintros executes his pre-established trading plan, it's worth examining the company's financial health through the lens of InvestingPro data. UniFirst boasts a market capitalization of $3.71 billion, reflecting its substantial presence in the uniform rental and facility services industry.
The company's P/E ratio stands at 25.61, which, when considered alongside its PEG ratio of 0.63, suggests that UniFirst may be undervalued relative to its growth prospects. This aligns with an InvestingPro Tip indicating that UniFirst is trading at a low P/E ratio relative to its near-term earnings growth.
UniFirst's financial stability is underscored by another InvestingPro Tip, which notes that the company holds more cash than debt on its balance sheet. This strong liquidity position is further reinforced by the fact that UniFirst's liquid assets exceed its short-term obligations, providing a solid foundation for future growth and potential market uncertainties.
The company's commitment to shareholder returns is evident in its dividend history. An InvestingPro Tip highlights that UniFirst has raised its dividend for 7 consecutive years and has maintained dividend payments for an impressive 42 consecutive years. This consistent dividend growth, coupled with a current dividend yield of 0.71%, may appeal to income-focused investors.
UniFirst's revenue growth is also noteworthy, with an 8.7% increase over the last twelve months and a more robust 11.89% growth in the most recent quarter. This growth trajectory, combined with a gross profit margin of 34.92%, indicates the company's ability to expand its business while maintaining profitability.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 8 more InvestingPro Tips available for UniFirst Corp, providing a deeper understanding of the company's financial position and market outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.