Freshpet (NASDAQ:FRPT) Trading 7% Higher - Should You Buy?

Key Points

• Freshpet shares rose 7% in Monday trading, reaching an intraday high of $57.08 after closing at $53.62 the previous session. However, volume was far below normal, with just 77,835 shares traded versus a 1.53 million daily average.
• Analyst sentiment remains generally positive despite some mixed targets: TD Cowen upgraded the stock to buy, while Jefferies lowered its target to $70 and Deutsche Bank kept a hold rating. Overall, MarketBeat shows a consensus rating of Moderate Buy with a $74.25 price target.
• Recent insider activity was notable, as CEO William B. Cyr sold 42,907 shares in May, reducing his position by 17.34%. Insiders have sold substantially more stock than they’ve bought over the last three months.

Freshpet, Inc. (NASDAQ:FRPT - Get Free Report)'s share price traded up 7% during mid-day trading on Monday . The company traded as high as $57.08 and last traded at $57.40. 77,835 shares were traded during trading, a decline of 95% from the average daily volume of 1,530,733 shares. The stock had previously closed at $53.62.

Analyst Ratings Changes

FRPT has been the topic of a number of recent analyst reports. Jefferies Financial Group reduced their price target on shares of Freshpet from $75.00 to $70.00 and set a "hold" rating on the stock in a research report on Wednesday, April 22nd. Stifel Nicolaus set a $66.00 target price on Freshpet in a report on Thursday, May 7th. TD Cowen upgraded Freshpet from a "hold" rating to a "buy" rating and set a $80.00 price target on the stock in a research report on Wednesday, April 8th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $63.00 price target on shares of Freshpet in a report on Thursday, May 7th. Finally, Morgan Stanley reiterated an "overweight" rating and issued a $77.00 price objective on shares of Freshpet in a research report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $74.25.

Freshpet Stock Performance

The company has a market capitalization of $2.75 billion, a P/E ratio of 15.02 and a beta of 1.60. The company has a debt-to-equity ratio of 0.34, a current ratio of 6.18 and a quick ratio of 5.26. The stock's 50 day simple moving average is $53.16 and its two-hundred day simple moving average is $62.99.

Insiders Place Their Bets

In other Freshpet news, CEO William B. Cyr sold 42,907 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $47.92, for a total value of $2,056,103.44. Following the transaction, the chief executive officer directly owned 204,585 shares in the company, valued at approximately $9,803,713.20. This trade represents a 17.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last three months, insiders have purchased 4,211 shares of company stock valued at $215,027 and have sold 235,262 shares valued at $11,664,591. 4.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Freshpet

Several hedge funds have recently added to or reduced their stakes in FRPT. Caitong International Asset Management Co. Ltd boosted its stake in shares of Freshpet by 606.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 417 shares of the company's stock valued at $25,000 after purchasing an additional 358 shares during the last quarter. Motiv8 Investments LLC bought a new stake in shares of Freshpet during the fourth quarter worth approximately $28,000. Signaturefd LLC raised its stake in shares of Freshpet by 143.0% during the fourth quarter. Signaturefd LLC now owns 503 shares of the company's stock worth $31,000 after buying an additional 296 shares during the last quarter. Parallel Advisors LLC lifted its holdings in Freshpet by 55.0% in the third quarter. Parallel Advisors LLC now owns 555 shares of the company's stock valued at $31,000 after buying an additional 197 shares during the period. Finally, MassMutual Private Wealth & Trust FSB lifted its holdings in Freshpet by 445.4% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 529 shares of the company's stock valued at $32,000 after buying an additional 432 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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