Freshpet (NASDAQ:FRPT) Stock Rating Lowered by Zacks Research

Key Points

• Freshpet stock has been downgraded from a "strong-buy" to a "strong sell" rating by Zacks Research, reflecting growing concerns among analysts.
• UBS Group has cut its price target on Freshpet shares from $65.00 to $48.00, while Bank of America decreased its target to $60.00 from $81.00, indicating a bearish outlook.
• Despite recent downgrades, Freshpet reported a net margin of 3.23% and a 12.5% revenue increase year-over-year, showcasing some operational resilience.

Freshpet (NASDAQ:FRPT - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "strong sell" rating in a note issued to investors on Monday,Zacks.com reports.

A number of other equities analysts also recently issued reports on FRPT. UBS Group cut their price target on shares of Freshpet from $65.00 to $48.00 and set a "sell" rating for the company in a report on Monday, September 8th. Bank of America reiterated a "neutral" rating and issued a $60.00 price target (down previously from $81.00) on shares of Freshpet in a report on Wednesday, October 8th. Wells Fargo & Company cut their price target on shares of Freshpet from $88.00 to $65.00 and set an "overweight" rating for the company in a report on Thursday, September 25th. 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. Finally, DA Davidson set a $101.00 price objective on shares of Freshpet in a research note on Thursday, August 7th. Eight analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Freshpet presently has an average rating of "Hold" and an average price target of $103.33.

Freshpet Stock Up 5.5%

Shares of Freshpet stock opened at $54.55 on Monday. The company has a market cap of $2.66 billion, a P/E ratio of 81.42, a PEG ratio of 1.16 and a beta of 1.74. The company has a debt-to-equity ratio of 0.40, a quick ratio of 3.75 and a current ratio of 4.81. Freshpet has a one year low of $46.76 and a one year high of $164.07. The firm has a fifty day moving average of $54.50 and a two-hundred day moving average of $67.86.

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

Insiders Place Their Bets

In related news, Director Timothy R. Mclevish bought 3,500 shares of the firm's stock in a transaction that occurred on Wednesday, September 10th. The shares were acquired at an average cost of $56.00 per share, with a total value of $196,000.00. Following the completion of the transaction, the director owned 35,290 shares of the company's stock, valued at approximately $1,976,240. The trade was a 11.01% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Walter N. George bought 1,000 shares of the firm's stock in a transaction that occurred on Monday, September 8th. The stock was bought at an average cost of $52.57 per share, for a total transaction of $52,570.00. Following the completion of the transaction, the director directly owned 46,527 shares of the company's stock, valued at approximately $2,445,924.39. The trade was a 2.20% increase in their position. The disclosure for this purchase can be found here. Insiders have bought 6,008 shares of company stock valued at $332,305 in the last ninety days. Insiders own 4.43% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of FRPT. Wasatch Advisors LP raised its stake in shares of 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 purchasing an additional 1,116,217 shares during the period. Champlain Investment Partners LLC increased its stake in shares of Freshpet by 41.5% in the second quarter. Champlain Investment Partners LLC now owns 2,568,954 shares of the company's stock worth $174,586,000 after buying an additional 753,070 shares during the last quarter. Armistice Capital LLC bought a new stake in shares of Freshpet in the first quarter worth $59,630,000. AQR Capital Management LLC increased its stake in shares of Freshpet by 278.5% in the second quarter. AQR Capital Management LLC now owns 859,981 shares of the company's stock worth $58,444,000 after buying an additional 632,756 shares during the last quarter. Finally, Engaged Capital LLC bought a new stake in shares of Freshpet in the second quarter worth $42,076,000.

Freshpet Company Profile

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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