Freshpet (NASDAQ:FRPT) Shares Down 6.8% - Should You Sell?

Key Points

• Freshpet's stock price fell by 6.8%, closing at $53.17 after trading as low as $54.15, amid a significant drop in trading volume of about 80%.
• Several analysts have revised their ratings on Freshpet, with UBS lowering its target price from $65.00 to $48.00, while the consensus price target remains at $108.07 according to MarketBeat.
• Freshpet reported $0.33 earnings per share for the last quarter, surpassing estimates, but its revenue of $264.69 million fell short of expectations of $269.75 million.

Freshpet, Inc. (NASDAQ:FRPT - Get Free Report)'s stock price was down 6.8% during trading on Wednesday . The company traded as low as $54.15 and last traded at $53.17. Approximately 270,981 shares traded hands during trading, a decline of 80% from the average daily volume of 1,351,730 shares. The stock had previously closed at $57.03.

Analysts Set New Price Targets

A number of equities research analysts have commented on FRPT shares. UBS Group lowered their target price on Freshpet from $65.00 to $48.00 and set a "sell" rating on the stock in a report on Monday. Wall Street Zen raised Freshpet from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Zacks Research upgraded Freshpet from a "strong sell" rating to a "hold" rating in a research note on Friday, August 22nd. TD Cowen downgraded Freshpet from a "buy" rating to a "hold" rating and set a $96.00 target price for the company. in a research note on Wednesday, May 28th. Finally, JPMorgan Chase & Co. assumed coverage on shares of Freshpet in a research note on Wednesday, August 20th. They issued a "neutral" rating and a $70.00 price objective on the stock. 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 company's stock. Based on data from MarketBeat, Freshpet has an average rating of "Hold" and a consensus price target of $108.07.

Freshpet Price Performance

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 market cap of $2.61 billion, a price-to-earnings ratio of 79.89, a price-to-earnings-growth ratio of 0.98 and a beta of 1.72. The company's 50-day moving average is $64.80 and its 200-day moving average is $75.92.

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

Institutional Investors Weigh In On Freshpet

Several hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. raised its holdings in Freshpet by 12.3% in the first quarter. Vanguard Group Inc. now owns 5,223,695 shares of the company's stock worth $434,455,000 after purchasing an additional 571,139 shares during the period. Wasatch Advisors LP raised its holdings in Freshpet by 41.0% in the second quarter. Wasatch Advisors LP now owns 3,839,332 shares of the company's stock worth $260,921,000 after purchasing an additional 1,116,217 shares during the period. Wellington Management Group LLP raised its holdings in Freshpet by 8.1% in the first quarter. Wellington Management Group LLP now owns 2,616,205 shares of the company's stock worth $217,590,000 after purchasing an additional 196,882 shares during the period. Champlain Investment Partners LLC increased its stake in Freshpet by 41.5% in the 2nd 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 last quarter. Finally, William Blair Investment Management LLC increased its stake in Freshpet by 20.6% in the 2nd 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 last quarter.

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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