Medifast (NYSE:MED) Releases Earnings Results, Beats Expectations By $0.37 EPS

Key Points

• Medifast beat quarterly expectations: The company reported an adjusted loss of $0.28 per share, $0.37 better than analysts’ estimate, while revenue of $76.38 million exceeded expectations of $72.70 million.
• Shares declined 1.1% to $9.72 after the results, with Medifast valued at approximately $108 million and trading near its one-year low of $9.22.
• Analyst sentiment remains mixed, resulting in a consensus “Hold” rating and a $12.00 price target; insiders own 3.70% of shares, while institutional investors hold 95.51%.

Medifast (NYSE:MED - Get Free Report) issued its earnings results on Monday. The specialty retailer reported ($0.28) EPS for the quarter, beating analysts' consensus estimates of ($0.65) by $0.37, FiscalAI reports. The business had revenue of $76.38 million during the quarter, compared to analysts' expectations of $72.70 million. Medifast had a negative net margin of 5.78% and a negative return on equity of 4.80%.

Medifast Trading Down 1.1%

MED traded down $0.10 on Monday, hitting $9.72. The company had a trading volume of 215,601 shares, compared to its average volume of 234,176. The company's fifty day moving average price is $11.11 and its 200 day moving average price is $11.05. Medifast has a 1 year low of $9.22 and a 1 year high of $15.11. The firm has a market cap of $108.14 million, a P/E ratio of -5.31 and a beta of 0.65.

Analysts Set New Price Targets

A number of research firms have weighed in on MED. Weiss Ratings lowered shares of Medifast from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, May 6th. Zacks Research upgraded Medifast from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $12.00.

Insiders Place Their Bets

In related news, Director Scott Schlackman purchased 2,500 shares of the company's stock in a transaction on Monday, May 11th. The stock was acquired at an average cost of $12.53 per share, for a total transaction of $31,325.00. Following the completion of the transaction, the director directly owned 30,549 shares in the company, valued at approximately $382,778.97. The trade was a 8.91% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. 3.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Medifast

A number of hedge funds have recently made changes to their positions in MED. BNP Paribas Financial Markets raised its position 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 period. Quantbot Technologies LP purchased a new position in shares of Medifast during the third quarter worth $37,000. Intesa Sanpaolo Wealth Management acquired a new stake in shares of Medifast in the fourth quarter valued at $47,000. State of Wyoming purchased a new stake in shares of Medifast in the 4th quarter valued at $59,000. Finally, Strs Ohio purchased a new stake in shares of Medifast in the 1st quarter valued at $78,000. Hedge funds and other institutional investors own 95.51% of the company's stock.

Medifast Company Profile

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.

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.