Medifast (NYSE:MED) Director Acquires $68,017.68 in Stock

Key Points

• Medifast Director Parsa Kiai purchased 5,557 shares at an average price of $12.24, investing $68,017.68 and increasing his stake to 712,891 shares. This followed several additional purchases totaling more than $1.4 million since August.
• Medifast shares fell 1.7% to $12.05, within a 12-month range of $9.22 to $13.45. The company recently reported a quarterly loss of $0.19 per share, which beat analyst expectations, while revenue of $72.05 million exceeded estimates.
• Institutional investors own 95.51% of the stock, while analyst sentiment is mixed, resulting in a consensus rating of Hold and an average price target of $12.00.

Medifast Inc (NYSE:MED - Get Free Report) Director Parsa Kiai acquired 5,557 shares of the stock in a transaction on Wednesday, October 28th. The stock was bought at an average cost of $12.24 per share, for a total transaction of $68,017.68. Following the transaction, the director owned 712,891 shares of the company's stock, valued at approximately $8,725,785.84. This trade represents a 0.79% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website.

Parsa Kiai also recently made the following trade(s):

• On Wednesday, August 26th, Parsa Kiai purchased 43,150 shares of Medifast stock. The shares were purchased at an average price of $12.26 per share, with a total value of $529,019.00.
• On Monday, August 24th, Parsa Kiai purchased 4,329 shares of Medifast stock. The shares were acquired at an average price of $12.00 per share, for a total transaction of $51,948.00.
• On Thursday, August 20th, Parsa Kiai bought 43,150 shares of Medifast stock. The shares were acquired at an average cost of $11.60 per share, for a total transaction of $500,540.00.
• On Wednesday, August 19th, Parsa Kiai purchased 29,337 shares of Medifast stock. The stock was bought at an average cost of $11.66 per share, with a total value of $342,069.42.

Medifast Stock Down 1.7%

Shares of NYSE:MED traded down $0.20 during midday trading on Friday, reaching $12.05. 109,776 shares of the company traded hands, compared to its average volume of 206,063. Medifast Inc has a 12 month low of $9.22 and a 12 month high of $13.45. The firm has a market capitalization of $134.77 million, a price-to-earnings ratio of -3.27 and a beta of 0.68. The firm's fifty day moving average price is $11.99 and its two-hundred day moving average price is $11.33.

Medifast (NYSE:MED - Get Free Report) last announced its quarterly earnings results on Monday, October 26th. The specialty retailer reported ($0.19) earnings per share for the quarter, beating the consensus estimate of ($0.35) by $0.16. The firm had revenue of $72.05 million for the quarter, compared to analysts' expectations of $71.30 million. Medifast had a negative return on equity of 6.90% and a negative net margin of 13.64%. Analysts forecast that Medifast Inc will post -0.57 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of MED. Engineers Gate Manager LP lifted its stake in shares of Medifast by 25.9% during the 2nd quarter. Engineers Gate Manager LP now owns 49,829 shares of the specialty retailer's stock worth $529,000 after acquiring an additional 10,249 shares during the last quarter. Squarepoint Ops LLC bought a new position in Medifast in the 2nd quarter valued at $214,000. Chico Wealth RIA purchased a new stake in Medifast in the second quarter worth $223,000. Ancora Advisors LLC purchased a new stake in Medifast in the second quarter worth $75,000. Finally, Empowered Funds LLC bought a new stake in shares of Medifast during the second quarter worth $701,000. 95.51% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

MED has been the topic of a number of research analyst reports. Weiss Ratings downgraded shares of Medifast from a "sell (d)" rating to a "sell (d-)" rating in a research report on Wednesday. Zacks Research upgraded shares of Medifast from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, October 13th. One research analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Medifast presently has an average rating of "Hold" and an average target price of $12.00.

About Medifast

Medifast, Inc NYSE: MED is a health and wellness company that provides weight-management products, programs and support services. Its primary brand, OPTAVIA, offers meal-replacement products, including shakes, bars, soups and other portion-controlled foods, along with structured plans intended to help customers establish healthier eating and lifestyle habits.

The company distributes its products primarily through an independent network of coaches who provide guidance, accountability and support to clients.

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