Medifast (NYSE:MED) Issues Quarterly Earnings Results, Beats Expectations By $0.16 EPS

Key Points

• Medifast beat quarterly expectations: The company reported a loss of $0.19 per share, $0.16 better than the consensus estimate, while revenue of $72.05 million exceeded expectations of $71.30 million.
• Shares remain under pressure: Medifast opened at $11.87, with a market capitalization of approximately $132.7 million, a negative P/E ratio of 5.09, and a 52-week range of $9.22 to $13.45.
• Analyst sentiment is mixed: The stock has an average “Hold” rating and a $12.00 consensus price target, while insiders made both notable purchases and sales during the latest quarter.

Medifast (NYSE:MED - Get Free Report) posted its earnings results on Monday. The specialty retailer reported ($0.19) earnings per share for the quarter, topping the consensus estimate of ($0.35) by $0.16, FiscalAI reports. The firm had revenue of $72.05 million during the quarter, compared to analysts' expectations of $71.30 million. Medifast had a negative return on equity of 6.69% and a negative net margin of 8.08%.

Medifast Price Performance

MED opened at $11.87 on Monday. Medifast has a 12 month low of $9.22 and a 12 month high of $13.45. The stock has a market capitalization of $132.71 million, a P/E ratio of -5.09 and a beta of 0.68. The business has a 50 day simple moving average of $11.95 and a 200-day simple moving average of $11.55.

Wall Street Analysts Forecast Growth

Several brokerages have commented on MED. Zacks Research upgraded shares of Medifast from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, October 13th. Weiss Ratings upgraded shares of Medifast from a "sell (e+)" rating to a "sell (d)" rating in a research report on Monday, August 17th. One analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $12.00.

Insider Buying and Selling at Medifast

In other Medifast news, Director Daniel Chard sold 9,545 shares of the business's stock in a transaction on Monday, September 28th. The shares were sold at an average price of $11.98, for a total transaction of $114,349.10. Following the sale, the director directly owned 140,153 shares in the company, valued at approximately $1,679,032.94. The trade was a 6.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Parsa Kiai bought 43,150 shares of the firm's stock in a transaction on Wednesday, August 26th. The shares were bought at an average price of $12.26 per share, for a total transaction of $529,019.00. Following the completion of the transaction, the director directly owned 707,492 shares in the company, valued at approximately $8,673,851.92. This represents a 6.50% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 119,966 shares of company stock valued at $1,423,576 in the last quarter. 3.70% of the stock is currently owned by company insiders.

Medifast Company Profile

Medifast, Inc NYSE: MED is a health and wellness company that provides weight-management products, programs and support services. Its primary brand, OPTAVIA, offers meal-replacement products, including shakes, bars, soups and other portion-controlled foods, along with structured plans intended to help customers establish healthier eating and lifestyle habits.

The company distributes its products primarily through an independent network of coaches who provide guidance, accountability and support to clients.

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