Freshpet (NASDAQ:FRPT) Sets New 1-Year Low on Insider Selling

Key Points

• Freshpet shares hit a new 52-week low after insider selling pressure, with the stock trading as low as $46.45 on Wednesday.
• CEO William B. Cyr sold multiple blocks of shares in mid-May, including a sale of 42,693 shares worth about $2.11 million, reducing his ownership stake.
• Despite the recent drop, Wall Street remains generally constructive on Freshpet, with a consensus rating of “Moderate Buy” and an average price target of $74.88.

Freshpet, Inc. (NASDAQ:FRPT - Get Free Report) reached a new 52-week low during trading on Wednesday following insider selling activity. The stock traded as low as $46.45 and last traded at $47.8550, with a volume of 51143 shares changing hands. The stock had previously closed at $47.39.

Specifically, CEO William B. Cyr sold 4,490 shares of the firm's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $49.09, for a total value of $220,414.10. Following the transaction, the chief executive officer directly owned 14,586 shares in the company, valued at $716,026.74. This trade represents a 23.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO William B. Cyr sold 42,693 shares of the company's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $49.32, for a total value of $2,105,618.76. Following the completion of the sale, the chief executive officer owned 165,446 shares of the company's stock, valued at $8,159,796.72. This represents a 20.51% decrease in their position. The SEC filing for this sale provides additional information. In other news, CEO William B. Cyr sold 4,489 shares of the business's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $50.04, for a total transaction of $224,629.56. Following the completion of the transaction, the chief executive officer directly owned 18,247 shares in the company, valued at approximately $913,079.88. The trade was a 19.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on FRPT. JPMorgan Chase & Co. raised shares of Freshpet from a "neutral" rating to an "overweight" rating and lifted their price objective for the stock from $66.00 to $68.00 in a research note on Thursday, May 7th. Bank of America reduced their price target on shares of Freshpet from $80.00 to $75.00 and set a "neutral" rating on the stock in a research report on Friday, April 10th. Stifel Nicolaus set a $66.00 price objective on shares of Freshpet in a research report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $63.00 price objective on shares of Freshpet in a research note on Thursday, May 7th. Finally, Benchmark boosted their target price on Freshpet from $90.00 to $93.00 and gave the company a "buy" rating in a research note on Monday, March 23rd. Eleven equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $74.88.

Freshpet Stock Performance

The firm has a market cap of $2.34 billion, a price-to-earnings ratio of 12.72 and a beta of 1.73. The stock has a 50-day moving average of $63.06 and a 200-day moving average of $64.27. The company has a debt-to-equity ratio of 0.34, a quick ratio of 5.26 and a current ratio of 6.18.

Freshpet (NASDAQ:FRPT - Get Free Report) last announced its quarterly earnings data on Monday, February 23rd. The company reported $0.64 EPS for the quarter, topping analysts' consensus estimates of $0.43 by $0.21. The business had revenue of $285.23 million for the quarter, compared to analyst estimates of $285.66 million. Freshpet had a net margin of 17.63% and a return on equity of 6.22%. The firm's revenue for the quarter was up 8.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.36 earnings per share. As a group, analysts anticipate that Freshpet, Inc. will post 1.71 EPS for the current fiscal year.

Institutional Trading of Freshpet

Hedge funds and other institutional investors have recently modified their holdings of the stock. Royal Bank of Canada raised its stake in shares of Freshpet by 86.3% during the 1st quarter. Royal Bank of Canada now owns 67,623 shares of the company's stock worth $5,624,000 after purchasing an additional 31,334 shares in the last quarter. Jones Financial Companies Lllp grew its position in shares of Freshpet by 734.1% in the 1st quarter. Jones Financial Companies Lllp now owns 1,810 shares of the company's stock valued at $151,000 after acquiring an additional 1,593 shares during the period. United Services Automobile Association bought a new position in shares of Freshpet in the 1st quarter valued at about $247,000. EverSource Wealth Advisors LLC increased its stake in shares of Freshpet by 1,388.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 506 shares of the company's stock worth $34,000 after purchasing an additional 472 shares during the last quarter. Finally, Cresset Asset Management LLC raised its holdings in shares of Freshpet by 140.3% in the 2nd quarter. Cresset Asset Management LLC now owns 6,296 shares of the company's stock valued at $428,000 after purchasing an additional 3,676 shares during the period.

About Freshpet

Freshpet Inc NASDAQ: FRPT is a leading pet food company specializing in fresh, refrigerated meals and treats for dogs and cats. The company's products are formulated with carefully selected, natural ingredients and are designed to offer a higher level of nutrition and freshness than traditional dry or canned pet foods. Freshpet's offerings include refrigerated rolls, pâtés and snacks, all of which are sold through the refrigerated section of grocery, mass-market and pet specialty stores.

Freshpet's product portfolio is built around the concept of fresh, minimally processed recipes that do not require preservatives or artificial colors.

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