Freshpet (NASDAQ:FRPT) Reaches New 1-Year Low - What's Next?

Key Points

• Freshpet's stock has reached a new 52-week low, trading at $46.76, down from a previous close of $52.87.
• Analysts have given the stock an average rating of "Moderate Buy" with a target price of $103.33, despite some firms lowering their price targets.
• The company reported a quarterly earnings per share of $0.33, exceeding expectations, but its revenue of $264.69 million fell short of analysts' predictions of $269.75 million.

Freshpet, Inc. (NASDAQ:FRPT - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $46.76 and last traded at $49.91, with a volume of 512485 shares. The stock had previously closed at $52.87.

Wall Street Analyst Weigh In

FRPT has been the topic of several recent research reports. Benchmark reiterated a "buy" rating and issued a $95.00 price target (down previously from $120.00) on shares of Freshpet in a report on Tuesday, August 5th. Stifel Nicolaus set a $90.00 target price on Freshpet and gave the company a "buy" rating in a report on Thursday, June 12th. Zacks Research upgraded Freshpet from a "hold" rating to a "strong-buy" rating in a report on Friday, October 3rd. Wells Fargo & Company dropped their target price on Freshpet from $88.00 to $65.00 and set an "overweight" rating on the stock in a report on Thursday, September 25th. Finally, Truist Financial dropped their target price on Freshpet from $80.00 to $70.00 and set a "hold" rating on the stock in a report on Tuesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $103.33.

Freshpet Stock Performance

The company has a market capitalization of $2.40 billion, a PE ratio of 73.34, a PEG ratio of 0.96 and a beta of 1.74. The company has a quick ratio of 3.75, a current ratio of 4.81 and a debt-to-equity ratio of 0.40. The company has a 50-day moving average price of $57.45 and a two-hundred day moving average price of $70.19.

Freshpet (NASDAQ:FRPT - Get Free Report) last announced its quarterly earnings results on Monday, August 4th. The company reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.21. The company had revenue of $264.69 million during the quarter, compared to analysts' expectations of $269.75 million. Freshpet had a return on equity of 4.82% and a net margin of 3.23%.The firm's quarterly revenue was up 12.5% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.03) earnings per share. Freshpet has set its FY 2025 guidance at EPS. Analysts predict that Freshpet, Inc. will post 1.55 EPS for the current fiscal year.

Insider Activity

In related news, Director Timothy R. Mclevish purchased 3,500 shares of Freshpet stock in a transaction dated Wednesday, September 10th. The stock was bought at an average cost of $56.00 per share, for a total transaction of $196,000.00. Following the completion of the transaction, the director owned 35,290 shares in the company, valued at $1,976,240. This trade represents a 11.01% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Walter N. George purchased 1,000 shares of Freshpet stock in a transaction dated Monday, September 8th. The stock was bought at an average price of $52.57 per share, with a total value of $52,570.00. Following the completion of the transaction, the director owned 46,527 shares of the company's stock, valued at $2,445,924.39. This represents a 2.20% increase in their position. The disclosure for this purchase can be found here. Over the last three months, insiders purchased 6,008 shares of company stock worth $332,305. 4.43% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Freshpet

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its stake in Freshpet by 12.3% during the first quarter. Vanguard Group Inc. now owns 5,223,695 shares of the company's stock valued at $434,455,000 after buying an additional 571,139 shares during the period. Wasatch Advisors LP boosted its stake in Freshpet by 41.0% during the second quarter. Wasatch Advisors LP now owns 3,839,332 shares of the company's stock valued at $260,921,000 after buying an additional 1,116,217 shares during the period. Wellington Management Group LLP boosted its stake in Freshpet by 8.1% during the first quarter. Wellington Management Group LLP now owns 2,616,205 shares of the company's stock valued at $217,590,000 after buying an additional 196,882 shares during the period. Champlain Investment Partners LLC boosted its stake in Freshpet by 41.5% during the second quarter. Champlain Investment Partners LLC now owns 2,568,954 shares of the company's stock valued at $174,586,000 after buying an additional 753,070 shares during the period. Finally, William Blair Investment Management LLC boosted its stake in Freshpet by 20.6% during the second quarter. William Blair Investment Management LLC now owns 1,527,068 shares of the company's stock valued at $103,780,000 after buying an additional 260,868 shares during the period.

About Freshpet

Freshpet, Inc, together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online.

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