Performance Food (PFGC, $40.08) to buy Reinhart Foodservice for $2 billion
Food distribution company Performance Food Group has agreed to acquire privately held Reinhart Foodservice for $2 billion.
Reinhart’s revenue last year came in at more than $6 billion.
The deal could potentially catapult Performance Food’s position as one of the largest food distributors in the U.S. with approximately $30 billion in net sales. The merger is expected to generate around $50 million of annual run-rate cost synergies in three years.
The transaction has been approved by the board of directors of Performance Food Group and the governing body of Reinhart. It is subject to U.S. federal antitrust approval.
PFGC in downward trend: price dove below 50-day moving average on May 16, 2023
PFGC moved below its 50-day moving average on May 16, 2023 date and that indicates a change from an upward trend to a downward trend. In of 42 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 71 cases where PFGC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The 10-day moving average for PFGC crossed bearishly below the 50-day moving average on May 22, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PFGC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PFGC entered a downward trend on June 07, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PFGC's RSI Indicator exited the oversold zone, of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on June 07, 2023. You may want to consider a long position or call options on PFGC as a result. In of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PFGC just turned positive on June 06, 2023. Looking at past instances where PFGC's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PFGC advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
PFGC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PFGC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.444) is normal, around the industry mean (122.811). P/E Ratio (26.954) is within average values for comparable stocks, (36.564). Projected Growth (PEG Ratio) (0.660) is also within normal values, averaging (1.467). PFGC has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.038). P/S Ratio (0.153) is also within normal values, averaging (4.240).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a distributor of food products
Industry FoodDistributors
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PFGC and
Correlation & Price change
A.I.dvisor indicates that over the last year, PFGC has been closely correlated with USFD. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if PFGC jumps, then USFD could also see price increases.
| Ticker / NAME | Correlation To PFGC | 1D Price Change % | ||
|---|---|---|---|---|
| PFGC | 100% | -1.22% | ||
| USFD - PFGC | 74% Closely correlated | -0.79% | ||
| SYY - PFGC | 73% Closely correlated | -0.25% | ||
| CHEF - PFGC | 65% Loosely correlated | -1.01% | ||
| UNFI - PFGC | 40% Loosely correlated | -14.91% | ||
| HFFG - PFGC | 34% Loosely correlated | +4.55% | ||
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