Freshpet (NASDAQ:FRPT) Shares Gap Up After Earnings Beat

Key Points

• Freshpet's stock price surged from a previous close of $65.85 to an opening price of $76.41 following a stronger-than-expected earnings report, with the latest trading at $70.70.
• The company reported earnings of $0.33 per share, significantly beating expectations of $0.13, along with a 12.5% year-over-year revenue increase.
• Recent analyst opinions have varied, with price targets ranging from $85 to $120, and the stock currently holds a consensus rating of "Hold" from analysts.

Freshpet, Inc. (NASDAQ:FRPT - Get Free Report)'s stock price gapped up before the market opened on Monday after the company announced better than expected quarterly earnings. The stock had previously closed at $65.85, but opened at $76.41. Freshpet shares last traded at $70.70, with a volume of 671,428 shares changing hands.

The company reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.21. The business 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 firm's revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.03) earnings per share.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. Wells Fargo & Company lowered their price objective on Freshpet from $100.00 to $88.00 and set an "overweight" rating for the company in a research report on Wednesday, July 9th. UBS Group initiated coverage on Freshpet in a research report on Monday, June 16th. They issued a "sell" rating and a $65.00 price target for the company. Benchmark reaffirmed a "buy" rating and issued a $95.00 price target (down previously from $120.00) on shares of Freshpet in a research report on Tuesday. Robert W. Baird lowered their price target on Freshpet from $125.00 to $115.00 and set an "outperform" rating for the company in a research report on Tuesday, May 6th. Finally, Stifel Nicolaus set a $90.00 price target on Freshpet and gave the stock a "buy" rating in a research report on Thursday, June 12th. Two analysts have rated the stock with a sell rating, five have given a hold rating and eight have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $116.64.

Institutional Investors Weigh In On Freshpet

A number of large investors have recently made changes to their positions in the company. Vident Advisory LLC grew its stake in shares of Freshpet by 4.0% during the 4th quarter. Vident Advisory LLC now owns 2,111 shares of the company's stock valued at $313,000 after purchasing an additional 82 shares during the period. Freedom Investment Management Inc. grew its stake in shares of Freshpet by 5.3% during the 4th quarter. Freedom Investment Management Inc. now owns 1,678 shares of the company's stock valued at $249,000 after purchasing an additional 84 shares during the period. Treasurer of the State of North Carolina grew its stake in shares of Freshpet by 0.6% during the 4th quarter. Treasurer of the State of North Carolina now owns 20,462 shares of the company's stock valued at $3,031,000 after purchasing an additional 120 shares during the period. Maryland State Retirement & Pension System grew its stake in shares of Freshpet by 1.2% during the 2nd quarter. Maryland State Retirement & Pension System now owns 16,510 shares of the company's stock valued at $1,122,000 after purchasing an additional 189 shares during the period. Finally, Elequin Capital LP bought a new stake in shares of Freshpet during the 4th quarter valued at about $29,000.

Freshpet Trading Down 2.3%

The stock has a 50 day simple moving average of $72.76 and a 200-day simple moving average of $90.65. The firm has a market capitalization of $3.21 billion, a P/E ratio of 98.26, a P/E/G ratio of 1.39 and a beta of 1.77. The company has a current ratio of 4.81, a quick ratio of 3.92 and a debt-to-equity ratio of 0.40.

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.