United Natural Foods Implied Volatility Skyrockets Amidst Analyst Skepticism

United Natural Foods, Inc. (UNFI) options traders are pricing in a big move for the stock, with high implied volatility. Analysts have a Zacks Rank #3 (Hold) and a consensus estimate of a penny per share for the current quarter. The high implied volatility could mean a trade is developing, with options traders looking to sell premium and capture decay.

United Natural Foods, Inc. (UNFI) has seen its stock price experience significant volatility in recent weeks, with options traders pricing in a substantial move. The company's stock has been under scrutiny following a cyber attack and subsequent class action investigation, leading to a heightened level of implied volatility [1].

On June 11, UBS lowered its price target on UNFI from $30 to $26, maintaining a "Neutral" rating. This decision was based on the company's third quarter fiscal 2025 results, which beat expectations but were overshadowed by concerns about customer retention and earnings potential due to a recent cyber attack [1]. Despite the positive financial performance, the cyber attack introduced uncertainty, leading UBS to lower its price target.

On June 26, UNFI reported that it had restored its main systems used by retail customers and suppliers, indicating that the incident had been contained and that electronic ordering and invoicing systems were back online [1]. However, the damage to the company's reputation and potential long-term effects on earnings remain to be seen.

Adding to the uncertainty, Pomerantz LLP is investigating claims on behalf of UNFI investors, alleging potential securities fraud or unlawful business practices [2]. The investigation follows a disclosure by UNFI on June 9, 2025, regarding unauthorized activity on certain IT systems, which temporarily impacted the company's ability to fulfill and distribute customer orders. This disclosure led to a significant drop in UNFI's stock price, falling $4.56 per share over two trading sessions [2].

Analysts currently have a Zacks Rank #3 (Hold) for UNFI, with a consensus estimate of a penny per share for the current quarter. The high implied volatility suggests that options traders are anticipating a significant move in the stock, possibly due to the ongoing investigation and the potential for further negative news [1].

Investors should closely monitor UNFI's progress in resolving the cyber attack and the outcome of the class action investigation. The company's ability to restore customer trust and maintain its financial performance will be crucial in determining its future stock performance.

References:
[1] https://finance.yahoo.com/news/ubs-lowers-united-natural-foods-154850765.html
[2] https://www.globenewswire.com/news-release/2025/07/10/3113295/1087/en/INVESTOR-ALERT-Pomerantz-Law-Firm-Investigates-Claims-On-Behalf-of-Investors-of-United-Natural-Foods-Inc-UNFI.html