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 disclosure filed with the Securities and Exchange Commission (SEC), the firm sold 691,735 shares, bringing its total ownership to 2,708,185 shares. This adjustment positions US Foods as approximately 4.4% of Clarkston’s investment portfolio, making it the firm’s fifth-largest position.
At the close of the most recent quarter, Clarkston Capital Partners held about 1.17% of US Foods, valued at $208,557,000. Other institutional investors have also shown significant activity regarding US Foods shares. For instance, Boston Partners increased its stake by 29.1% in the first quarter, acquiring an additional 3,713,345 shares, which brought its total holdings to 16,457,351 shares valued at $1,076,225,000.
During the same period, Burgundy Asset Management Ltd. established a new stake valued at approximately $110,245,000, while Primecap Management Co. boosted its position by an impressive 84.4% in the second quarter, acquiring an additional 1,639,310 shares to reach 3,580,710 shares with a value of $275,750,000.
Another noteworthy investor, Jupiter Asset Management Ltd., entered a new position in US Foods during the first quarter worth about $91,087,000. Additionally, AQR Capital Management LLC saw its position grow by 120.3% in the first quarter, now owning 2,537,434 shares worth $162,853,000. Collectively, institutional investors own 98.76% of US Foods stock.
Insider trading activity also reflects changes in ownership. On November 11, 2023, insider Steven Guberman sold 58,632 shares at an average price of $72.00, totaling $4,221,504. Following the sale, Guberman retained 113,410 shares valued at approximately $8,165,520, marking a 34.08% decrease in his stake.
US Foods Financial Performance and Analyst Insights
On November 6, 2023, US Foods released its latest earnings results, reporting earnings per share (EPS) of $1.07, surpassing analysts’ expectations of $1.05 by $0.02. The company achieved revenue of $10.19 billion for the quarter, slightly exceeding analyst estimates of $10.18 billion. This represents a 4.8% increase in revenue compared to the same quarter last year, when the firm earned $0.85 EPS.
Looking ahead, analysts predict that US Foods Holding Corp. will post an EPS of $3.59 for the current fiscal year. Recent evaluations from various analysts suggest a generally positive outlook for the company. Guggenheim recently raised its price target from $80.00 to $88.00 and issued a “buy” rating. Meanwhile, Barclays adjusted its target price from $95.00 to $90.00, maintaining an “overweight” rating.
Further endorsements come from Weiss Ratings, which reaffirmed a “buy (b)” rating, and Sanford C. Bernstein, which restated an “outperform” rating. Wells Fargo & Company also reaffirmed its “overweight” rating, adjusting its price objective to $87.00 from a previous $80.00. Notably, two analysts rated the stock as a Strong Buy, while eleven provided a Buy rating and one rated it as Hold. The consensus rating for US Foods is currently “Buy,” with a target price of $82.00.
Current Market Position
As of the latest trading session, shares of US Foods opened at $78.72. The company has a fifty-day moving average of $74.86 and a 200-day moving average of $77.27. With a market capitalization of $17.55 billion, US Foods has a price-to-earnings (P/E) ratio of 32.80, a price/earnings to growth (PEG) ratio of 1.07, and a beta of 1.34. The firm maintains a current ratio of 1.15, a quick ratio of 0.70, and a debt-to-equity ratio of 1.08. Over the past year, the stock has seen a low of $57.36 and a high of $85.11.
US Foods Holding Corp. is a leading distributor of food and non-food products, catering to a diverse range of foodservice customers including restaurants, hospitals, and educational institutions across the United States. As institutional investments and strategic analyst upgrades continue to shape its market trajectory, US Foods remains a key player in the food distribution sector.
