Cantor Fitzgerald Issues Pessimistic Forecast for Trupanion (NASDAQ:TRUP) Stock Price

Key Points

• Cantor Fitzgerald cut its price target on Trupanion from $42 to $34 and kept a "neutral" rating, joining other brokers who have lowered targets or ratings; the street consensus remains a Hold with an average target of $42.50.
• TRUP traded at $25.34 (down 1.3%) and near its one‑year low after reporting Q results of $0.13 EPS (missing by $0.01); revenue rose 11.7% YoY but the company has a thin net margin (1.35%) and a high P/E (~56).
• Company insiders have been net sellers recently — the COO and CFO sold shares and insiders disposed of 21,502 shares (~$580k) in the last 90 days, though insiders still own about 5.42% of the stock.

Trupanion (NASDAQ:TRUP - Get Free Report) had its target price cut by equities researchers at Cantor Fitzgerald from $42.00 to $34.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has a "neutral" rating on the financial services provider's stock. Cantor Fitzgerald's target price would indicate a potential upside of 34.18% from the stock's previous close.

A number of other brokerages have also weighed in on TRUP. Stifel Nicolaus decreased their price objective on shares of Trupanion from $35.00 to $31.00 and set a "hold" rating for the company in a report on Tuesday, March 31st. Weiss Ratings lowered shares of Trupanion from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, March 4th. Zacks Research lowered shares of Trupanion from a "strong-buy" rating to a "hold" rating in a report on Friday, February 13th. Finally, Piper Sandler reduced their price target on shares of Trupanion from $60.00 to $45.00 and set an "overweight" rating for the company in a report on Friday, February 13th. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $42.50.

Trupanion Trading Down 1.3%

TRUP traded down $0.33 on Thursday, reaching $25.34. 21,962 shares of the company traded hands, compared to its average volume of 454,000. Trupanion has a one year low of $24.32 and a one year high of $57.88. The firm has a fifty day simple moving average of $27.80 and a two-hundred day simple moving average of $34.72. The company has a market cap of $1.10 billion, a P/E ratio of 56.33 and a beta of 1.66. The company has a quick ratio of 1.69, a current ratio of 1.69 and a debt-to-equity ratio of 0.27.

Trupanion (NASDAQ:TRUP - Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The financial services provider reported $0.13 earnings per share for the quarter, missing analysts' consensus estimates of $0.14 by ($0.01). Trupanion had a net margin of 1.35% and a return on equity of 5.39%. The company had revenue of $376.85 million for the quarter, compared to the consensus estimate of $375.89 million. During the same quarter in the previous year, the business earned $0.04 EPS. The company's quarterly revenue was up 11.7% compared to the same quarter last year. As a group, equities research analysts expect that Trupanion will post 0.13 earnings per share for the current year.

Insider Buying and Selling

In related news, COO John R. Gallagher sold 5,283 shares of the business's stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $26.52, for a total transaction of $140,105.16. Following the completion of the transaction, the chief operating officer owned 32,387 shares in the company, valued at $858,903.24. The trade was a 14.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Fawwad Qureshi sold 4,645 shares of the business's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $25.61, for a total transaction of $118,958.45. The SEC filing for this sale provides additional information. Insiders sold a total of 21,502 shares of company stock worth $580,315 in the last 90 days. 5.42% of the stock is owned by corporate insiders.

Institutional Trading of Trupanion

Several large investors have recently bought and sold shares of the stock. Voya Investment Management LLC grew its position in Trupanion by 2.4% during the 3rd quarter. Voya Investment Management LLC now owns 10,379 shares of the financial services provider's stock worth $449,000 after purchasing an additional 243 shares during the last quarter. Thrivent Financial for Lutherans grew its position in Trupanion by 1.1% during the 2nd quarter. Thrivent Financial for Lutherans now owns 24,853 shares of the financial services provider's stock worth $1,376,000 after purchasing an additional 282 shares during the last quarter. EP Wealth Advisors LLC grew its position in Trupanion by 2.9% during the 2nd quarter. EP Wealth Advisors LLC now owns 10,310 shares of the financial services provider's stock worth $571,000 after purchasing an additional 292 shares during the last quarter. AdvisorNet Financial Inc grew its position in Trupanion by 2.5% during the 3rd quarter. AdvisorNet Financial Inc now owns 14,210 shares of the financial services provider's stock worth $615,000 after purchasing an additional 350 shares during the last quarter. Finally, PNC Financial Services Group Inc. grew its position in Trupanion by 21.7% during the 3rd quarter. PNC Financial Services Group Inc. now owns 2,678 shares of the financial services provider's stock worth $116,000 after purchasing an additional 478 shares during the last quarter.

About Trupanion

Trupanion, Inc is a pet medical insurance company that provides comprehensive insurance coverage for cats and dogs. The company's core offering is a single, customizable medical policy designed to cover veterinary diagnostic tests, surgeries, hospital stays and congenital or hereditary conditions. Trupanion seeks to streamline the claims process by offering direct payment options to participating veterinarians, reducing the need for upfront payments by pet owners.

Founded in 1999 by Darryl Rawlings and headquartered in Seattle, Washington, Trupanion began operations in the early 2000s and has grown its presence through both digital channels and partnerships with veterinary hospitals.

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