Insider Buying: Vital Farms (NASDAQ:VITL) Insider Buys 3,500 Shares of Stock

Key Points

• Insider buying: Vital Farms insider Peter Nicholas Pappas bought 3,500 shares at $8.51 each, boosting his direct ownership by 4.29% to 85,169 shares. The article also notes that several other insiders purchased shares the same day, which can signal confidence in the company.
• Stock and earnings pressure: VITL fell 2.4% to $8.28 and is trading near its 52-week low, far below its 50-day and 200-day moving averages. The company also recently missed EPS expectations, though quarterly revenue rose 15.4% year over year.
• Mixed Wall Street view: Analyst sentiment is currently a consensus Hold, with recent price-target cuts and a range of opinions across firms. Despite that, institutional investors still own 98.59% of the stock and several funds increased their positions in the first quarter.

Vital Farms, Inc. (NASDAQ:VITL - Get Free Report) insider Peter Nicholas Pappas bought 3,500 shares of the stock in a transaction on Thursday, May 14th. The shares were acquired at an average cost of $8.51 per share, for a total transaction of $29,785.00. Following the completion of the transaction, the insider directly owned 85,169 shares of the company's stock, valued at approximately $724,788.19. The trade was a 4.29% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

Vital Farms Stock Down 2.4%

Vital Farms stock traded down $0.20 during mid-day trading on Monday, hitting $8.28. 4,186,829 shares of the company's stock were exchanged, compared to its average volume of 2,728,813. The company has a current ratio of 1.77, a quick ratio of 1.00 and a debt-to-equity ratio of 0.01. The stock has a market cap of $354.80 million, a P/E ratio of 7.96 and a beta of 1.20. Vital Farms, Inc. has a 1-year low of $7.95 and a 1-year high of $53.13. The stock has a 50 day moving average of $13.38 and a two-hundred day moving average of $24.24.

Vital Farms (NASDAQ:VITL - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.12). The business had revenue of $187.16 million during the quarter, compared to analyst estimates of $182.40 million. Vital Farms had a net margin of 6.10% and a return on equity of 14.47%. The company's revenue for the quarter was up 15.4% compared to the same quarter last year. During the same period in the prior year, the business posted $0.37 earnings per share. As a group, analysts anticipate that Vital Farms, Inc. will post -0.45 EPS for the current fiscal year.

More Vital Farms News

Here are the key news stories impacting Vital Farms this week:

• Positive Sentiment: Several insiders bought shares on May 14, including a large purchase by Joseph Michael Holland, along with buys from Peter Nicholas Pappas, CMO Kathryn McKeon, and Director Kelly J. Kennedy. Insider buying can signal confidence from management and directors. Article Title
• Neutral Sentiment: Brokerage coverage was reported as a consensus “Hold,” suggesting Wall Street is not currently strongly bullish or bearish on Vital Farms. Article Title
• Negative Sentiment: A broker note reportedly cut Vital Farms’ price target to $15.50, a sizable reduction that can pressure the stock by signaling weaker expectations for future upside. Article Title
• Negative Sentiment: Multiple law firms issued class-action and securities-fraud lawsuit notices tied to Vital Farms, with deadlines for lead-plaintiff participation. These repeated legal headlines may raise investor concerns about potential liability and uncertainty. Article Title

Institutional Investors Weigh In On Vital Farms

Several hedge funds have recently made changes to their positions in VITL. Royal Bank of Canada lifted its stake in shares of Vital Farms by 89.2% in the first quarter. Royal Bank of Canada now owns 19,381 shares of the company's stock valued at $591,000 after buying an additional 9,136 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Vital Farms by 5.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,057 shares of the company's stock valued at $611,000 after buying an additional 1,108 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of Vital Farms by 3.3% in the first quarter. Goldman Sachs Group Inc. now owns 415,420 shares of the company's stock valued at $12,658,000 after buying an additional 13,397 shares during the period. Woodline Partners LP bought a new stake in shares of Vital Farms in the first quarter valued at about $1,073,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Vital Farms by 1.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 89,893 shares of the company's stock valued at $2,739,000 after buying an additional 1,198 shares during the period. Institutional investors own 98.59% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. Mizuho set a $20.00 price target on Vital Farms in a research report on Monday, May 4th. William Blair reaffirmed a "market perform" rating on shares of Vital Farms in a research report on Friday, May 8th. Zacks Research downgraded Vital Farms from a "hold" rating to a "strong sell" rating in a research report on Monday, March 2nd. Morgan Stanley set a $10.00 price target on Vital Farms in a research report on Friday, May 8th. Finally, Needham & Company LLC lowered their price target on Vital Farms from $20.00 to $13.00 and set a "buy" rating on the stock in a research report on Monday, May 11th. Five research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $27.33.

About Vital Farms

Vital Farms, traded on the NASDAQ under the symbol VITL, is a U.S.-based food company specializing in pasture-raised egg and dairy products. The company partners with a network of family farms across the United States to produce eggs, butter and related items under a certified humane, pasture-centric farming model. Vital Farms' supply chain emphasizes animal welfare, environmental stewardship and transparent sourcing, appealing to consumers seeking ethically produced, high-quality ingredients.

Founded in 2007 and headquartered in Austin, Texas, Vital Farms began by marketing pasture-raised eggs to health- and ethically minded shoppers.

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