What Happened?
Shares of workplace uniform provider UniFirst (NYSE: UNF) fell 13.7% in the morning session after Cintas terminated talks to acquire the company (UNF) in a deal that would have been worth $275 per share in cash. The offer price represented a premium of 46% over the stock's average trading price before the news of the offer was made public.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy UniFirst? Access our full analysis report here, it’s free.
What The Market Is Telling Us
UniFirst’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. Moves this big are rare for UniFirst and indicate this news significantly impacted the market’s perception of the business.
UniFirst is down 0.3% since the beginning of the year, and at $169.78 per share, it is trading 26.3% below its 52-week high of $230.50 from January 2025. Investors who bought $1,000 worth of UniFirst’s shares 5 years ago would now be looking at an investment worth $1,240.
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