Here’s Why United Natural Foods (UNFI) Declined in Q3 - InvestingChannel

Here’s Why United Natural Foods (UNFI) Declined in Q3

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -2.25% compared to a -2.96% return for the Russell 2000 Value Index. The Fund returned 2.57% YTD compared to -0.53% for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

FPA Queens Road Small Cap Value Fund highlighted stocks like United Natural Foods, Inc. (NYSE:UNFI) in the third quarter 2023 investor letter. Headquartered in Providence, Rhode Island, United Natural Foods, Inc. (NYSE:UNFI) is a distributor of natural, organic, and specialty foods and non-food products. On November 17, 2023, United Natural Foods, Inc. (NYSE:UNFI) stock closed at $15.02 per share. One-month return of United Natural Foods, Inc. (NYSE:UNFI) was 3.51%, and its shares lost 67.57% of their value over the last 52 weeks. United Natural Foods, Inc. (NYSE:UNFI) has a market capitalization of $892.305 million.

FPA Queens Road Small Cap Value Fund made the following comment about United Natural Foods, Inc. (NYSE:UNFI) in its Q3 2023 investor letter:

“United Natural Foods, Inc. (NYSE:UNFI) distributes natural and organic food. Whole Foods is a 20% customer, but UNFI has done a reasonable job diversifying its product and customer base, with a big boost from its acquisition of SuperValu in 2018. The company’s share price has declined with three successive earnings misses and guidance revisions this year. 18 UNFI is suffering from a combination of volatile food prices, consumers trading down from high-priced organic food items, and pricing and execution mistakes by the company. Distribution is usually a resilient business model and, on a normalized basis, UNFI looks cheap. But the company is now in full-bore turnaround mode, and we have been judicious about adding to our position.”

Freshly harvested vegetables ready for packaging in a state-of-the-art manufacturing plant.

United Natural Foods, Inc. (NYSE:UNFI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held United Natural Foods, Inc. (NYSE:UNFI) at the end of second quarter which was 19 in the previous quarter.

We discussed United Natural Foods, Inc. (NYSE:UNFI) in another article and shared FPA Queens Road Small Cap Value Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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