Freshpet (NASDAQ:FRPT) Sets New 52-Week Low - Here's What Happened

Key Points

• Freshpet's stock price fell to a new 52-week low of $50.93, significantly below its previous close of $52.12, with a trading volume exceeding 2.12 million shares.
• Analyst sentiment towards Freshpet has shifted, with significant price target reductions: Truist lowered its target from $80.00 to $70.00, while Wells Fargo reduced theirs from $100.00 to $88.00, reflecting broader concerns about the company's performance.
• Freshpet reported an EPS of $0.33 for the latest quarter, surpassing estimates but with revenue lower than expectations, highlighting mixed financial results amid its growth strategy.

Freshpet, Inc. (NASDAQ:FRPT - Get Free Report) shares hit a new 52-week low during trading on Monday . The company traded as low as $50.93 and last traded at $50.75, with a volume of 2129159 shares changing hands. The stock had previously closed at $52.12.

Wall Street Analysts Forecast Growth

FRPT has been the subject of a number of research analyst reports. Stifel Nicolaus set a $90.00 price target on Freshpet and gave the company a "buy" rating in a research report on Thursday, June 12th. JPMorgan Chase & Co. initiated coverage on Freshpet in a research report on Wednesday, August 20th. They set a "neutral" rating and a $70.00 price target for the company. Zacks Research raised Freshpet from a "strong sell" rating to a "hold" rating in a research report on Friday, August 22nd. Truist Financial decreased their price target on Freshpet from $80.00 to $70.00 and set a "hold" rating for the company in a research report on Tuesday, August 5th. Finally, Wall Street Zen raised Freshpet from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Eight investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $108.07.

Freshpet Stock Down 0.7%

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 stock has a 50-day simple moving average of $61.61 and a 200-day simple moving average of $72.71. The firm has a market capitalization of $2.49 billion, a PE ratio of 76.15, a P/E/G ratio of 0.91 and a beta of 1.72.

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

Hedge Funds Weigh In On Freshpet

Hedge funds have recently made changes to their positions in the stock. Banque Transatlantique SA purchased a new position in shares of Freshpet in the first quarter valued at $25,000. WPG Advisers LLC purchased a new position in shares of Freshpet in the first quarter valued at $34,000. EverSource Wealth Advisors LLC grew its position in shares of Freshpet by 1,388.2% in the second quarter. EverSource Wealth Advisors LLC now owns 506 shares of the company's stock valued at $34,000 after purchasing an additional 472 shares in the last quarter. State of Wyoming purchased a new position in shares of Freshpet in the second quarter valued at $34,000. Finally, BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new position in shares of Freshpet in the second quarter valued at $35,000.

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.