PROVIDENCE, R.I. — Benedict Danielle, Chief Human Resources Officer at United Natural Foods Inc. (NYSE:UNFI), recently sold 9,050 shares of the company's common stock. The transaction, executed on October 17, 2024, was conducted under a prearranged trading plan adopted on June 7, 2024. The shares were sold at an average price of $22.10 each, resulting in a total sale value of $200,005. Following this transaction, Danielle retains ownership of 88,218 shares in the company.
In other recent news, United Natural Foods (UNFI) reported strong fourth-quarter results, with sales amounting to $8.2 billion and an adjusted EBITDA of $143 million, marking a significant increase from the previous year's $93 million. Goldman Sachs (NYSE:GS), BMO Capital Markets, and UBS all revised their price targets for UNFI, reflecting a more confident perspective on the company's financial prospects. Despite these positive adjustments, BTIG maintained a neutral stance, expressing caution regarding the company's multi-year plans.
UNFI also outlined a strategic growth plan focusing on natural and specialty products, expecting to generate approximately $100 million in free cash flow by fiscal 2025. The company aims to reduce its net leverage to less than 2.5 turns by the end of fiscal 2027 and projects an adjusted EPS between $0.20 and $0.80 per share for fiscal 2025.
In a move to optimize its distribution network, UNFI announced the closure of two owned distribution centers. These recent developments underscore UNFI's strategic direction towards sustained financial health and growth over the next three years.
InvestingPro Insights
As United Natural Foods Inc. (NYSE:UNFI) experiences insider selling activity, it's worth examining the company's financial health and market performance. According to InvestingPro data, UNFI's market capitalization stands at $1.27 billion, with the stock trading at $22.05 as of the previous close. This price represents 93% of its 52-week high, indicating a strong recent performance.
The company's financial metrics paint a mixed picture. While UNFI's revenue for the last twelve months reached $30.98 billion, with a 2.34% growth rate, its profitability has been challenged. The company reported a negative diluted EPS of $1.89 for the same period, resulting in a negative P/E ratio of -304.02.
InvestingPro Tips highlight that UNFI operates with a significant debt burden, which could be a concern for investors. However, the company's liquid assets exceed short-term obligations, suggesting a degree of financial stability in the near term. Additionally, UNFI is trading at a low revenue valuation multiple, which may attract value-oriented investors.
It's noteworthy that UNFI has shown strong returns over various time frames. The stock has delivered a 41.71% return over the past month and an impressive 135.83% return over the last six months. This positive momentum aligns with the insider selling activity, as executives may be capitalizing on the stock's recent performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for UNFI, 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.