Clarkston Capital Partners LLC has reduced its holdings in US Foods Holding Corp. (NYSE: USFD) by 20.3% during the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). Following the sale of 691,735 shares, Clarkston now owns 2,708,185 shares, which represents approximately 4.4% of its investment portfolio, making US Foods its fifth largest position. As of the end of the last quarter, Clarkston’s stake in US Foods was valued at about $208.6 million.
This decision comes amid broader movements in the investment community, with several hedge funds and institutional investors actively buying and selling shares of US Foods. Notably, Boston Partners increased its stake by 29.1% in the first quarter, acquiring an additional 3,713,345 shares to reach a total of 16,457,351 shares valued at $1.08 billion. Similarly, Burgundy Asset Management Ltd. established a new position worth approximately $110.2 million during the same period.
Other significant movements include Primecap Management Co. CA, which raised its stake in US Foods by an impressive 84.4% in the second quarter, now holding 3,580,710 shares valued at $275.8 million. Jupiter Asset Management Ltd. also bought a new stake worth about $91.1 million, while AQR Capital Management LLC increased its position by 120.3%, bringing its total to 2,537,434 shares valued at $162.9 million. Overall, institutional investors control approximately 98.76% of US Foods’ stock.
In related news, insider Steven Guberman sold 58,632 shares on November 11, 2023, at an average price of $72.00, totaling around $4.2 million. Following this transaction, Guberman retained 113,410 shares, valued at approximately $8.17 million, indicating a significant 34.08% decrease in his ownership.
US Foods’ Market Performance and Analyst Ratings
As of the latest trading session, shares of US Foods opened at $78.72. The company maintains a fifty-day moving average of $74.86 and a two-hundred-day moving average of $77.27. With a market capitalization of $17.55 billion, US Foods reports a price-to-earnings (PE) ratio of 32.80 and a debt-to-equity ratio of 1.08. Over the past year, the stock has experienced a low of $57.36 and a high of $85.11.
In its most recent earnings report, released on November 6, 2023, US Foods announced earnings per share (EPS) of $1.07, surpassing analysts’ expectations of $1.05 by $0.02. The company reported revenue of $10.19 billion for the quarter, slightly above estimates of $10.18 billion, marking a 4.8% increase compared to the same quarter last year.
Expectations for US Foods remain positive, with analysts predicting an EPS of $3.59 for the current fiscal year. Recent analyst upgrades reflect this optimism. For instance, Guggenheim raised its price target for US Foods from $80.00 to $88.00, maintaining a “buy” rating. Meanwhile, Barclays adjusted its target price from $95.00 to $90.00 while assigning an “overweight” rating.
Additionally, Wells Fargo & Company reaffirmed its “overweight” rating with a new price target of $87.00, an increase from $80.00. Overall, the consensus rating for US Foods stands at “Buy” with a price target of $82.00.
Company Overview
US Foods Holding Corp., along with its subsidiaries, specializes in the marketing, sale, and distribution of a wide variety of fresh, frozen, and dry food products, as well as non-food items, to foodservice customers across the United States. Its clientele includes a diverse range of entities such as independently owned restaurants, national chains, hospitals, and government organizations.
As the market continues to evolve, US Foods remains a significant player in the foodservice industry, adapting to changing consumer demands and institutional needs.
