William Blair Investment Management LLC Acquires Shares of 799,448 Vital Farms, Inc. $VITL

Key Points

• William Blair Investment Management disclosed a new stake in Vital Farms, buying 799,448 shares valued at about $25.5 million. The position represented roughly 1.79% of the company at quarter-end.
• Vital Farms’ latest quarterly results showed a loss of $0.03 per share, missing estimates, even though revenue came in at $187.16 million and rose 15.4% year over year.
• Analysts remain cautious on the stock: several recently cut ratings or price targets, and the overall consensus is now Hold with an average target price of $27.33.

William Blair Investment Management LLC acquired a new stake in Vital Farms, Inc. (NASDAQ:VITL - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund acquired 799,448 shares of the company's stock, valued at approximately $25,534,000. William Blair Investment Management LLC owned approximately 1.79% of Vital Farms at the end of the most recent quarter.

A number of other institutional investors also recently added to or reduced their stakes in the business. Global Retirement Partners LLC boosted its stake in shares of Vital Farms by 4,382.6% during the 4th quarter. Global Retirement Partners LLC now owns 1,031 shares of the company's stock worth $33,000 after acquiring an additional 1,008 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Vital Farms during the 3rd quarter worth approximately $55,000. PNC Financial Services Group Inc. boosted its stake in shares of Vital Farms by 225.6% during the 4th quarter. PNC Financial Services Group Inc. now owns 1,452 shares of the company's stock worth $46,000 after acquiring an additional 1,006 shares in the last quarter. Virtus Advisers LLC purchased a new stake in shares of Vital Farms during the 3rd quarter worth approximately $105,000. Finally, GAMMA Investing LLC boosted its stake in shares of Vital Farms by 896.2% during the 4th quarter. GAMMA Investing LLC now owns 2,590 shares of the company's stock worth $83,000 after acquiring an additional 2,330 shares in the last quarter. Hedge funds and other institutional investors own 98.59% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently commented on VITL. Benchmark lowered Vital Farms from a "buy" rating to a "hold" rating in a research note on Thursday, February 26th. Stifel Nicolaus reissued a "hold" rating and set a $10.00 price target (down from $34.00) on shares of Vital Farms in a research note on Friday, May 8th. Morgan Stanley set a $10.00 price target on Vital Farms in a research note on Friday, May 8th. TD Cowen lowered Vital Farms from a "buy" rating to a "hold" rating and decreased their price target for the stock from $25.00 to $16.00 in a research note on Wednesday, April 8th. Finally, William Blair reissued a "market perform" rating on shares of Vital Farms in a research note on Friday, May 8th. Five research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $27.33.

Vital Farms Stock Performance

Shares of Vital Farms stock opened at $10.13 on Tuesday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.77 and a quick ratio of 1.00. Vital Farms, Inc. has a 1 year low of $7.95 and a 1 year high of $53.13. The company has a market capitalization of $434.07 million, a P/E ratio of 9.74 and a beta of 1.20. The business has a 50 day moving average price of $12.26 and a 200 day moving average price of $23.19.

Vital Farms (NASDAQ:VITL - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.12). Vital Farms had a return on equity of 14.47% and a net margin of 6.10%.The company had revenue of $187.16 million for the quarter, compared to analyst estimates of $182.40 million. During the same quarter in the prior year, the firm earned $0.37 earnings per share. The company's revenue for the quarter was up 15.4% on a year-over-year basis. Sell-side analysts anticipate that Vital Farms, Inc. will post -0.45 EPS for the current fiscal year.

Insider Buying and Selling

In other Vital Farms news, insider Joseph Michael Holland purchased 12,484 shares of the business's stock in a transaction on Thursday, May 14th. The stock was bought at an average cost of $8.00 per share, for a total transaction of $99,872.00. Following the acquisition, the insider owned 38,150 shares of the company's stock, valued at approximately $305,200. The trade was a 48.64% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Glenda J. Flanagan purchased 6,100 shares of the business's stock in a transaction on Monday, May 18th. The stock was acquired at an average price of $8.33 per share, with a total value of $50,813.00. Following the completion of the acquisition, the director directly owned 37,498 shares in the company, valued at $312,358.34. The trade was a 19.43% increase in their position. The SEC filing for this purchase provides additional information. Insiders acquired a total of 43,700 shares of company stock worth $413,114 in the last three months. 21.30% of the stock is currently owned by insiders.

Vital Farms Company Profile

Vital Farms, traded on the NASDAQ under the symbol VITL, is a U.S.-based food company specializing in pasture-raised egg and dairy products. The company partners with a network of family farms across the United States to produce eggs, butter and related items under a certified humane, pasture-centric farming model. Vital Farms' supply chain emphasizes animal welfare, environmental stewardship and transparent sourcing, appealing to consumers seeking ethically produced, high-quality ingredients.

Founded in 2007 and headquartered in Austin, Texas, Vital Farms began by marketing pasture-raised eggs to health- and ethically minded shoppers.

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