Performance Food Intrinsic Stock Value – Insider Selling Activity at Performance Food Group Raises Concerns Over Bearish Signals
July 12, 2023
🌥️Trending News
Performance Food ($NYSE:PFGC) Group, a leading provider of food and related products to the foodservice industry, has seen a steady increase in insider selling activity recently. This has raised concerns among potential investors who fear that such bearish signals may signal a downturn in the company’s fortunes and performance. This kind of activity is often seen as a bearish signal, as insiders tend to be more aware of the company’s performance and prospects than investors who are on the outside. As such, these disposals can create a sense of uncertainty and cause investors to become more cautious when considering investing in Performance Food Group. At the same time, there may be other motivations at play for these sales, such as diversifying portfolios or taking profits from a successful investment.
As such, it is important for potential investors to do their research and understand the broader context before making any decisions. Overall, the insider selling activity at Performance Food Group certainly raises some red flags for potential investors. With this in mind, it is important for investors to take a closer look at the company’s performance and prospects before committing any capital.
Price History
On Tuesday, Performance Food Group (PFG) stock opened at $60.9 and closed at $61.0, up by 0.4% from prior closing price of 60.7.
However, the same day, several executives sold off PFG shares, raising concerns over bearish signals. Though these numbers may seem insignificant in terms of individual impact, the collective selling activity may be seen as a sign of pessimism from the insider perspective. Furthermore, this activity has led to a decrease in investor confidence and thus a potential dip in stock prices. It remains to be seen how markets will respond to the insider selling activity in the coming days. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Performance Food. More…
| Total Revenues | Net Income | Net Margin |
| 56.98k | 323.1 | 0.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Performance Food. More…
| Operations | Investing | Financing |
| 543.1 | -292.8 | -255.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Performance Food. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.19k | 8.61k | 23.18 |
Key Ratios Snapshot
Some of the financial key ratios for Performance Food are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.2% | 42.5% | 1.2% |
| FCF Margin | ROE | ROA |
| 0.5% | 11.7% | 3.4% |
Analysis – Performance Food Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of PERFORMANCE FOOD‘s financials. Our proprietary Valuation Line has determined that the fair value of PERFORMANCE FOOD share is around $64.8. However, PERFORMANCE FOOD stock is currently being traded at $61.0, representing a 5.9% undervaluation of its fair price. More…
Peers
The company operates through three segments: Performance Foodservice, PFG Customized, and Vistar. Performance Foodservice segment offers food and non-food products to independent restaurants, quick-service restaurants, caterers, and national restaurant chains. PFG Customized segment provides food and non-food products to customers who desire a customized distribution solution. Vistar segment supplies non-food products, equipment, and solutions to customers in the vending, office coffee service, theatre, and foodservice management industries.
– US Foods Holding Corp ($NYSE:USFD)
With a market capitalization of $6.66 billion as of 2022, US Foods Holding Corp is a publicly traded foodservice distributor. The company operates a network of nearly 300 distribution centers across the United States, serving more than 250,000 customers. US Foods Holding Corp also offers a variety of foodservice solutions, including custom-cut meat, seafood, and poultry; branded and private label products; and kitchen supplies and equipment. The company’s return on equity was 6.98% as of 2022.
– Sysco Corp ($NYSE:SYY)
Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of brands includesSysco, Brakes, FreshPoint and EFS. The company operates approximately 330 distribution facilities worldwide and serves more than 625,000 customer locations.
– Sligro Food Group NV ($LTS:0MKM)
Sligro Food Group is a Dutch food retailer and wholesaler. The company has a market cap of 662.56M as of 2022 and a return on equity of 8.07%. The company operates a chain of supermarkets and hypermarkets under the brand name “Sligro”.
Summary
Investors should be cautious when considering purchasing the stock of Performance Food Group (PFG). Last year, several insiders sold a large volume of their shares, which could indicate a lack of confidence in the company’s prospects. Additionally, a review of current analyst ratings reveals a majority of “Holds” and “Sell” ratings, indicating potential downside risk. Investors should weigh the risks carefully before making a decision to invest in PFG.
