BlackRock Inc. Makes New Investment in Medifast Inc $MED

Key Points

• BlackRock acquired 369,503 Medifast shares worth approximately $3.92 million, giving it a 3.30% stake. Institutional investors collectively own 95.51% of the company.
• Medifast insiders purchased 119,966 shares worth about $1.42 million over the past 90 days, including Director Parsa Kiai’s purchase of 43,150 shares.
• Medifast exceeded quarterly earnings expectations, reporting a loss of $0.28 per share versus the expected $0.65 loss, while revenue reached $76.38 million. Analysts maintain a consensus “Reduce” rating with a $12 average price target.

BlackRock Inc. acquired a new stake in shares of Medifast Inc (NYSE:MED - Free Report) in the second quarter, according to its most recent disclosure with the SEC. The firm acquired 369,503 shares of the specialty retailer's stock, valued at approximately $3,920,000. BlackRock Inc. owned approximately 3.30% of Medifast at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Charles Schwab Investment Management Inc. lifted its stake in Medifast by 30.5% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 776,829 shares of the specialty retailer's stock worth $8,297,000 after purchasing an additional 181,618 shares in the last quarter. Bank of America Corp DE grew its holdings in Medifast by 14.2% during the 3rd quarter. Bank of America Corp DE now owns 452,543 shares of the specialty retailer's stock valued at $6,186,000 after buying an additional 56,174 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in Medifast by 10.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 361,762 shares of the specialty retailer's stock valued at $3,686,000 after buying an additional 35,522 shares in the last quarter. Lido Advisors LLC bought a new stake in Medifast in the 3rd quarter worth approximately $4,521,000. Finally, Steamboat Capital Partners LLC bought a new stake in Medifast in the 4th quarter worth approximately $2,952,000. Institutional investors own 95.51% of the company's stock.

Insider Transactions at Medifast

In related news, Director Parsa Kiai purchased 43,150 shares of the stock in a transaction that occurred on Wednesday, August 26th. The stock was bought at an average cost 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 $8,673,851.92. This represents a 6.50% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Insiders acquired 119,966 shares of company stock valued at $1,423,576 in the last ninety days. 3.70% of the stock is owned by company insiders.

Medifast Trading Up 0.7%

MED opened at $12.62 on Friday. The stock has a 50-day moving average of $11.19 and a 200 day moving average of $11.15. Medifast Inc has a 12 month low of $9.22 and a 12 month high of $14.67. The firm has a market cap of $141.15 million, a P/E ratio of -5.42 and a beta of 0.71.

Medifast (NYSE:MED - Get Free Report) last posted its quarterly earnings data on Monday, August 3rd. The specialty retailer reported ($0.28) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.65) by $0.37. The business had revenue of $76.38 million during the quarter, compared to analyst estimates of $72.70 million. Medifast had a negative return on equity of 6.69% and a negative net margin of 8.08%.Medifast has set its FY 2026 guidance at -1.750--0.250 EPS and its Q3 2026 guidance at -0.650--0.150 EPS. On average, research analysts forecast that Medifast Inc will post -1.04 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the company. Zacks Research cut Medifast from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 11th. Weiss Ratings upgraded shares of Medifast from a "sell (e+)" rating to a "sell (d)" rating in a research report on Monday, August 17th. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average price target of $12.00.

Medifast Company Profile

Medifast, Inc NYSE: MED is a health and wellness company specializing in clinically supported weight-loss, weight-management and healthy living products and services. Through its OPTAVIA brand, the company offers a range of meal replacement products, snacks, supplements and coaching programs designed to support metabolic health and sustainable lifestyle changes. Medifast markets its products directly to consumers via a network of independent distributors—known as OPTAVIA Coaches—who provide personalized guidance and support throughout the client's weight‐loss journey.

Founded in 1980 by William Vitale and headquartered in Baltimore, Maryland, Medifast has grown into a nationally recognized provider of nutrition and weight‐management solutions.

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