Nordea Investment Management AB Reduces Stake in US Foods Holding Corp: Implications for Future Outlook

Nordea Investment Management AB, a leading investment management company, recently revealed that it has reduced its stake in US Foods Holding Corp. The company sold 128,004 shares of US Foods during the second quarter of this year, which represents a decrease of 9.6%. This information was disclosed in Nordea’s most recent filing with the Securities and Exchange Commission.

Currently, Nordea Investment Management AB owns approximately 1,210,347 shares of US Foods Holding Corp., accounting for around 0.52% of the company’s total shares. At the end of the last reporting period, these shares were valued at $53,001,000.

US Foods Holding Corp., operating through its subsidiary, is primarily involved in the marketing, sale, and distribution of various food and non-food products to foodservice customers across the United States. Its customer base primarily consists of independently owned single and multi-unit restaurants, national restaurant chains, regional concepts, nursing homes, hospitals, hotels and motels, government and military organizations, colleges and universities, as well as retail locations.

A report on US Foods indicates that the company offers a wide range of fresh, frozen, and dry food items to cater to the diverse needs of its customers. Additionally, it supplies non-food products that are essential for foodservice operations.

With its extensive distribution network and strong industry presence,the company has built solid relationships with numerous players in the foodservice sector. Its vast array of customers reflects its ability to serve various segments within this industry effectively.

As Nordea Investment Management AB continues to manage its investment portfolio strategically,this recent decrease in its stake in US Foods Holding Corp raises questions regarding their future outlook on the company’s performance. Investors may be interested in monitoring how this development will impact both Nordea’s investment strategy moving forward as well as US Foods’ position within the market.

It is important to note that this information is current as of September 17th, 2023. Any further developments or changes in the disclosed stake may have occurred since then and should be verified separately.

Institutional Investors Increase Holdings of US Foods, Indicating Potential for Growth

Institutional investors have made significant adjustments to their holdings of US Foods, as disclosed in recent reports. NewEdge Advisors LLC, for instance, saw a 67.4% increase in its shares of US Foods during the first quarter. Following this acquisition, NewEdge Advisors now owns 708 shares of the company’s stock, with an estimated value of $26,000. Similarly, Park Place Capital Corp increased its holdings by 25.3%, which translates to owning 1,705 shares valued at $63,000.

Raymond James Trust N.A., not wanting to be left behind, also boosted its holdings in US Foods by 2.6%, bringing their total share count to 15,254 and worth about $574,000. Signaturefd LLC joined the bandwagon with a whopping 46.6% increase in holdings during the same period, adding an additional 387 shares valued at $45,000 to their portfolio.

Finally, Ellevest Inc., not one to shy away from expanding their investments either, increased their holdings by 18.2%. With this move, they now own an impressive 2,990 shares amounting to $110,000.

The text also reveals that hedge funds and other institutional investors have overwhelmingly invested in US Foods. They currently hold around 98.69% of the company’s stock.

Additionally through recent research reports on US Foods conducted by various agencies such as StockNews.com and Morgan Stanley among others reveal noteworthy findings and evaluations on the company’s performance. StockNews.com issued a “strong-buy” rating on US Foods stocks while Morgan Stanley revised its rating from “equal weight” to “overweight,” along with raising the price target from $46.00 to $54.00.

Further information can be gathered from analysts’ predictions compiled by Bloomberg.com which showcases a consensus rating of “Buy” for US Foods’ stock with a consensus target price of $47.45.

Trading on the New York Stock Exchange (NYSE) under the ticker symbol “USFD,” the company’s stock opened at $40.58 on September 17, 2023. US Foods currently holds a market capitalization of $10.02 billion, with a relatively high price-to-earnings (P/E) ratio of 21.94 and a beta of 1.51.

For investors interested in assessing the company’s liquidity, US Foods has a quick ratio of 0.84 and a current ratio of 1.34, indicating its ability to settle short-term obligations efficiently. Moreover, the firm maintains a healthy debt-to-equity ratio of 1.01, suggesting that it balances its finances prudently.

When examining the company’s performance over time, one can observe that its fifty-day simple moving average stands at $41.50 whereas its two-hundred-day simple moving average is set at $39.97.

The stellar earnings results released by US Foods on August 10th showcased an earnings per share (EPS) of $0.73 for the quarter—meeting analysts’ consensus forecasts exactly. The revenue generated during this period amounted to an impressive $9.01 billion—a tad below analysts’ estimates of $9.37 billion.

Despite facing stiff competition within their industry sector, US Foods succeeded in maintaining a net margin of 1.33% and recorded a respectable return on equity (ROE) figure of 13.63%.

Market analysts now anticipate that US Foods Holding Corp.’s earnings per share for the current fiscal year will amount to approximately $2.46—an encouraging outlook for investors and stakeholders alike.

Overall, with institutional investors displaying increased interest in acquiring shares along with positive research reports from reputable sources and sound financial statements reported by the company itself, US Foods demonstrates strong potential for growth and profitability in the future.