Medifast (NYSE:MED) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Medifast from “strong buy” to “hold,” while Weiss Ratings maintained a “sell (e+)” rating. The stock has an average “reduce” rating and a consensus price target of $12.
• Medifast opened at $11.58, with a market capitalization of approximately $129.5 million and a 52-week range of $9.22 to $14.67.
• The company reported a quarterly loss of $0.28 per share, beating expectations for a $0.65 loss, while revenue of $76.38 million also exceeded forecasts. Despite the earnings beat, Medifast posted negative margins and analysts expect a full-year loss.

Medifast (NYSE:MED - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

Separately, Weiss Ratings restated a "sell (e+)" rating on shares of Medifast in a research report on Monday, August 3rd. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Reduce" and a consensus target price of $12.00.

Medifast Price Performance

NYSE MED opened at $11.58 on Tuesday. The stock's 50 day simple moving average is $10.99 and its 200-day simple moving average is $11.06. Medifast has a 1-year low of $9.22 and a 1-year high of $14.67. The company has a market cap of $129.48 million, a PE ratio of -4.97 and a beta of 0.65.

Medifast (NYSE:MED - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The specialty retailer reported ($0.28) earnings per share for the quarter, beating analysts' consensus estimates of ($0.65) by $0.37. Medifast had a negative net margin of 8.08% and a negative return on equity of 6.69%. The business had revenue of $76.38 million during the quarter, compared to analysts' expectations of $72.70 million. Medifast has set its FY 2026 guidance at -1.750--0.250 EPS and its Q3 2026 guidance at -0.650--0.150 EPS. On average, equities research analysts anticipate that Medifast will post -1 EPS for the current fiscal year.

Institutional Investors Weigh In On Medifast

A number of hedge funds and other institutional investors have recently made changes to their positions in MED. BNP Paribas Financial Markets increased its stake in Medifast by 103.1% in the third quarter. BNP Paribas Financial Markets now owns 2,338 shares of the specialty retailer's stock valued at $32,000 after purchasing an additional 1,187 shares during the last quarter. Quantbot Technologies LP acquired a new stake in Medifast in the 3rd quarter worth about $37,000. Intesa Sanpaolo Wealth Management acquired a new stake in Medifast in the 4th quarter worth about $47,000. State of Wyoming purchased a new stake in Medifast in the 4th quarter valued at about $59,000. Finally, Strs Ohio purchased a new stake in Medifast in the 1st quarter valued at about $78,000. Hedge funds and other institutional investors own 95.51% of the company's stock.

About Medifast

Medifast, Inc NYSE: MED is a health and wellness company specializing in clinically supported weight-loss, weight-management and healthy living products and services. Through its OPTAVIA brand, the company offers a range of meal replacement products, snacks, supplements and coaching programs designed to support metabolic health and sustainable lifestyle changes. Medifast markets its products directly to consumers via a network of independent distributors—known as OPTAVIA Coaches—who provide personalized guidance and support throughout the client's weight‐loss journey.

Founded in 1980 by William Vitale and headquartered in Baltimore, Maryland, Medifast has grown into a nationally recognized provider of nutrition and weight‐management solutions.

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