Jefferies Downgrades Unilever to Sell Amid Negative Corporate Insider Sentiment

Jefferies analyst David Hayes maintains a Sell rating on Unilever with a target price of £3,900.00, a 12.06% downside from current levels. The average price target is £5,054.10, a 12.06% upside. Unilever's market cap is £110.7B and P/E ratio is 23.86. Corporate insider sentiment is negative, with an increase in insiders selling their shares over the past quarter.

July 02, 2025

Jefferies analyst David Hayes has maintained a Sell rating on Unilever PLC (NYSE: UL) with a target price of £3,900.00, a 12.06% downside from the current levels [2]. The average price target stands at £5,054.10, representing a 12.06% upside. Unilever's market capitalization is £110.7 billion, and its price-to-earnings (P/E) ratio is 23.86.

Hayes' Sell rating comes amidst a mixed analyst sentiment, with a consensus rating of "Moderate Buy" and an average price target of £72.50 [2]. The analyst's target price is significantly lower than the average target price, indicating a more bearish outlook.

Corporate insider sentiment has been negative, with an increase in insiders selling their shares over the past quarter [2]. This trend could indicate a lack of confidence in the company's future prospects.

Unilever PLC operates as a fast-moving consumer goods company, with a presence in the Asia Pacific, Africa, the Americas, and Europe. It operates through five segments: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream [2]. Despite recent analyst upgrades and a positive change in the dividend payout ratio, the company faces challenges in maintaining investor confidence.

David Hayes' Sell rating is part of a broader debate surrounding Unilever's stock performance and the broader economic landscape. The Federal Reserve's handling of monetary policy, as urged by Jefferies strategist David Zervos, is also under scrutiny [1]. Zervos has called for immediate and significant interest rate cuts to address labor market slowdown risks, emphasizing the importance of job growth over inflation concerns.

The mixed analyst sentiment and negative insider sentiment provide a complex picture for Unilever investors. While the company's fundamentals remain strong, the current market conditions and analyst ratings suggest caution. Investors should closely monitor the company's financial performance and the broader economic environment to make informed decisions.

References:
[1] https://www.ainvest.com/news/jefferies-strategist-calls-50-basis-point-rate-cut-2508/
[2] https://www.marketbeat.com/instant-alerts/filing-trillium-asset-management-llc-has-4351-million-stock-position-in-unilever-plc-nyseul-2025-08-12/