Freshpet (NASDAQ:FRPT) Trading Up 11% on Earnings Beat

Key Points

• Freshpet shares jumped 11% after the company reported quarterly EPS of $0.39, beating the $0.22 consensus estimate, while revenue of $305.59 million exceeded expectations and rose 15.4% year over year.
• Analysts remain broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $74.50; TD Cowen and DA Davidson recently upgraded their ratings.
• Insider activity was mixed: CEO William B. Cyr sold 42,495 shares, while director Craig D. Steeneck purchased 2,000 shares. Over the past 90 days, insiders sold substantially more stock than they bought.

Freshpet, Inc. (NASDAQ:FRPT - Get Free Report)'s stock price rose 11% during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $69.70 and last traded at $69.27. Approximately 932,722 shares were traded during trading, a decline of 37% from the average session volume of 1,484,178 shares. The stock had previously closed at $62.38.

The company reported $0.39 EPS for the quarter, beating the consensus estimate of $0.22 by $0.17. The firm had revenue of $305.59 million for the quarter, compared to analyst estimates of $292.33 million. Freshpet had a net margin of 17.63% and a return on equity of 6.22%. The business's quarterly revenue was up 15.4% compared to the same quarter last year. During the same period last year, the firm earned $0.33 EPS.

Wall Street Analyst Weigh In

Several research firms have weighed in on FRPT. Wall Street Zen upgraded Freshpet from a "sell" rating to a "hold" rating in a research note on Sunday. TD Cowen raised Freshpet from a "hold" rating to a "buy" rating and set a $80.00 price target for the company in a report on Wednesday, April 8th. Morgan Stanley restated an "overweight" rating and set a $77.00 price objective on shares of Freshpet in a research report on Thursday, May 7th. Jefferies Financial Group reduced their price objective on Freshpet from $75.00 to $70.00 and set a "hold" rating on the stock in a research note on Wednesday, April 22nd. Finally, DA Davidson raised Freshpet to a "strong-buy" rating in a research note on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $74.50.

Insiders Place Their Bets

In other Freshpet news, CEO William B. Cyr sold 42,495 shares of the company's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $51.03, for a total value of $2,168,519.85. Following the completion of the transaction, the chief executive officer owned 224,459 shares of the company's stock, valued at $11,454,142.77. This represents a 15.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Craig D. Steeneck acquired 2,000 shares of Freshpet stock in a transaction that occurred on Wednesday, May 20th. The stock was acquired at an average cost of $47.83 per share, for a total transaction of $95,660.00. Following the purchase, the director owned 37,500 shares of the company's stock, valued at $1,793,625. The trade was a 5.63% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders have purchased 4,211 shares of company stock worth $215,027 and have sold 235,262 shares worth $11,664,591. Insiders own 4.30% of the company's stock.

Institutional Trading of Freshpet

A number of large investors have recently bought and sold shares of FRPT. Caitong International Asset Management Co. Ltd grew its stake in Freshpet by 606.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 417 shares of the company's stock worth $25,000 after purchasing an additional 358 shares during the period. Motiv8 Investments LLC acquired a new position in Freshpet during the fourth quarter worth $28,000. Signaturefd LLC lifted its stake in shares of Freshpet by 143.0% in the fourth quarter. Signaturefd LLC now owns 503 shares of the company's stock valued at $31,000 after buying an additional 296 shares in the last quarter. Parallel Advisors LLC grew its holdings in shares of Freshpet by 55.0% during 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 last quarter. Finally, TD Waterhouse Canada Inc. bought a new stake in shares of Freshpet during the fourth quarter worth about $32,000.

Freshpet Trading Up 11.0%

The company has a quick ratio of 5.26, a current ratio of 6.18 and a debt-to-equity ratio of 0.34. The company has a market capitalization of $3.40 billion, a P/E ratio of 18.52 and a beta of 1.61. The firm's 50-day moving average price is $55.23 and its 200 day moving average price is $62.50.

Freshpet Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source