Unifirst (NYSE:UNF) Shares Gap Down – Time to Sell?

Unifirst Corporation (NYSE:UNF) gapped down before the market opened on Wednesday . The stock had previously closed at $203.15, but opened at $187.82. Unifirst shares last traded at $194.7750, with a volume of 84,295 shares traded.

Trending Headlines about Unifirst

Here are the key news stories impacting Unifirst this week:

• Positive Sentiment: Top-line held up: revenue grew modestly year-over-year (Q1 revenue ~ $621M, +2.7%) and gross profit was slightly higher, showing continued demand resilience. Unifirst Corporation (UNF) Releases Q1 2026 Earnings: Revenue In Line, EPS Miss on Margin Pressure
• Positive Sentiment: Recent quarter-over-quarter sales momentum: prior-quarter Q4 sales were reported to top estimates, supporting medium-term revenue expectations. UniFirst’s (NYSE:UNF) Q4 CY2025 Sales Top Estimates
• Neutral Sentiment: Company filed the official Q1 press release and held a conference call; management provided FY2026 guidance and a direct discussion of results for investors to parse. UniFirst Announces Financial Results for the First Quarter of Fiscal 2026
• Negative Sentiment: EPS missed expectations: the quarter’s EPS came in below analyst consensus, which is the primary near-term catalyst behind the share weakness. Market writeups flagged the miss and immediate investor reaction. US Stocks Edge Higher; UniFirst Shares Fall After Q1 Results
• Negative Sentiment: Margin and profitability pressure: operating profit and net income declined materially year-over-year as cost of sales rose, driving margin compression. Weak operating cash flow and higher capital spending also raise short-term liquidity and free-cash-flow concerns. Unifirst Corporation (UNF) Releases Q1 2026 Earnings: Revenue In Line, EPS Miss on Margin Pressure
• Negative Sentiment: FY2026 EPS guidance was set at $6.580–$6.980, below the consensus (~$7.03), which tempered investor expectations for full-year profitability even though revenue guidance was roughly in line. That guidance gap is a key driver of the down move. UniFirst Announces Financial Results for the First Quarter of Fiscal 2026

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of Unifirst in a research note on Wednesday, October 8th. UBS Group set a $182.00 target price on shares of Unifirst in a report on Thursday, October 23rd. Zacks Research raised shares of Unifirst from a “strong sell” rating to a “hold” rating in a research report on Monday, December 22nd. Finally, Barclays reduced their price target on shares of Unifirst from $152.00 to $145.00 and set an “underweight” rating for the company in a research report on Thursday, October 23rd. Four research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $174.75.

Unifirst Price Performance

The business’s 50-day moving average price is $173.84 and its 200-day moving average price is $172.89. The firm has a market capitalization of $3.60 billion, a PE ratio of 24.80 and a beta of 0.72.

Unifirst (NYSE:UNF) last issued its quarterly earnings results on Wednesday, October 22nd. The textile maker reported $2.28 earnings per share for the quarter, topping analysts’ consensus estimates of $2.15 by $0.13. Unifirst had a net margin of 6.10% and a return on equity of 7.11%. The firm had revenue of $614.45 million during the quarter, compared to analysts’ expectations of $607.02 million. During the same quarter in the prior year, the business earned $2.39 EPS. Unifirst’s quarterly revenue was down 4.0% compared to the same quarter last year. Unifirst has set its FY 2026 guidance at 6.580-6.980 EPS. Equities analysts forecast that Unifirst Corporation will post 7.71 earnings per share for the current year.

Unifirst Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, January 2nd. Investors of record on Friday, December 5th were given a $0.365 dividend. This is a boost from Unifirst’s previous quarterly dividend of $0.35. The ex-dividend date was Friday, December 5th. This represents a $1.46 annualized dividend and a yield of 0.7%. Unifirst’s payout ratio is presently 18.30%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Parkside Financial Bank & Trust raised its stake in shares of Unifirst by 285.7% during the second quarter. Parkside Financial Bank & Trust now owns 135 shares of the textile maker’s stock worth $25,000 after purchasing an additional 100 shares during the last quarter. Advisors Asset Management Inc. acquired a new position in Unifirst in the 2nd quarter valued at $25,000. Geneos Wealth Management Inc. raised its position in Unifirst by 474.1% during the 1st quarter. Geneos Wealth Management Inc. now owns 155 shares of the textile maker’s stock worth $27,000 after buying an additional 128 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Unifirst by 378.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 153 shares of the textile maker’s stock worth $29,000 after acquiring an additional 121 shares during the period. Finally, Danske Bank A S purchased a new stake in shares of Unifirst in the third quarter valued at about $33,000. Institutional investors and hedge funds own 78.17% of the company’s stock.

About Unifirst

UniFirst Corporation (NYSE: UNF) is a leading provider of customized uniform rental and facility service programs in North America and Europe. The company specializes in the rental, laundering and maintenance of workwear, corporate apparel and protective garments for a broad range of industries, including manufacturing, automotive, hospitality, healthcare and food processing. UniFirst also offers a suite of facility service products such as entrance mats, restroom supplies, wipers, mops and hygienic services designed to help customers maintain clean and safe environments.

In addition to its core uniform rental business, UniFirst has expanded its product portfolio to include safety and first-responder gear, flame-resistant clothing, high-visibility apparel and personal protective equipment (PPE).