Why United Natural Foods, Inc. (UNFI) Stock Crashed Nearly -7.47% Today

United Natural Foods, Inc. (NYSE:UNFI) is one of the stocks that are grabbing investor focus today: sinking -7.47% or (-0.6 points) to $7.43 from its previous close of $8.03. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 211808 contracts so far this session. UNFI shares had a relatively better volume day versus average trading capacity of 1.09 million shares, but with a 52.23 million float and a -1.95% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for UNFI stock indicates that the average analyst price target is $10.5 per share. This means the stock has a potential increase of 41.32% from where the UNFI share price has been trading recently which is between $7.7204 and $8.24. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $5.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “UNFI Announces Management Changes” and dated August 12, 2019.

During the recent trading session for United Natural Foods, Inc. (NYSE:UNFI), the company witnessed their stock drop by $-0.82 over a week and tumble down $-2 from the price 20 days ago. When compared to their established 52-week high of $35.63, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 08/31/18. The recent low of $7.49 stood for a -79.15% since 08/14/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.08 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for United Natural Foods, Inc., the two-week RSI stands at 30.16. This figure suggests that UNFI stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current UNFI readings is similarly very revealing as it has a stochastic reading of 15.39% at this stage. This figure means that UNFI share price today is being overbought.

Technical chart claims that United Natural Foods, Inc. (UNFI) would settle between $8.27/share to $8.52/share level. However, if the stock price goes below the $7.75 mark, then the market for United Natural Foods, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $7.48 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.26. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at BMO Capital Markets lowered their recommendation on shares of UNFI from Market Perform to Underperform in their opinion released on August 02. Pivotal Research Group analysts again handed out a Sell recommendation to United Natural Foods, Inc. (NYSE:UNFI) stock but they lifted target price for the shares in a flash note issued to investors on June 06. The target price has been raised from $8 to $6. Analysts at Pivotal Research Group lowered the stock to a Sell call from its previous Hold recommendation, in a research note that dated back to March 07.

UNFI equity has an average rating of 3.12, with the figure leaning towards a bullish end. 16 analysts who tracked the company were contacted by Reuters. Amongst them, 9 rated the stock as a hold while the remaining 7 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 2 analysts rated United Natural Foods, Inc. (NYSE:UNFI) as a buy or a strong buy while 5 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, UNFI stock price is currently trading at 4.64X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.03 while for the average stock in the same group, the multiple is 0.88.