Morgan Stanley Lowers Vital Farms (NASDAQ:VITL) Price Target to $15.00

Key Points

• Morgan Stanley cut its price target for Vital Farms from $24.00 to $15.00 and kept an "equal weight" rating, with the new target implying roughly a 20% upside from the stock's prior close.
• Several other brokers have also trimmed ratings and targets recently, yet MarketBeat data shows a consensus of "Moderate Buy" with an average analyst target of $36.67, highlighting substantial analyst divergence on the name.
• Vital Farms reported Q4 EPS of $0.35 (missing estimates by $0.03) and revenue of $213.6M (+28.6% YoY); the stock trades at a market cap of ~$560M and a PE of 8.68, with a 52‑week range of $12.12–$53.13.

Vital Farms (NASDAQ:VITL - Get Free Report) had its price objective cut by research analysts at Morgan Stanley from $24.00 to $15.00 in a report released on Thursday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's price target would suggest a potential upside of 20.00% from the stock's previous close.

Several other equities analysts also recently weighed in on the company. Zacks Research downgraded Vital Farms from a "hold" rating to a "strong sell" rating in a research report on Monday, March 2nd. TD Cowen cut Vital Farms from a "buy" rating to a "hold" rating and decreased their price target for the company from $25.00 to $16.00 in a report on Wednesday, April 8th. Telsey Advisory Group decreased their price target on Vital Farms from $35.00 to $26.00 and set an "outperform" rating on the stock in a report on Friday, March 27th. Benchmark cut Vital Farms from a "buy" rating to a "hold" rating in a report on Thursday, February 26th. Finally, Stifel Nicolaus decreased their price target on Vital Farms from $39.00 to $34.00 and set a "buy" rating on the stock in a report on Tuesday. Nine analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $36.67.

Vital Farms Price Performance

NASDAQ VITL opened at $12.50 on Thursday. The company has a market capitalization of $560 million, a PE ratio of 8.68 and a beta of 1.35. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.61 and a current ratio of 2.16. The business's fifty day moving average is $17.61 and its 200 day moving average is $27.48. Vital Farms has a fifty-two week low of $12.12 and a fifty-two week high of $53.13.

Vital Farms (NASDAQ:VITL - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.03). The company had revenue of $213.55 million for the quarter, compared to analysts' expectations of $212.83 million. Vital Farms had a net margin of 8.73% and a return on equity of 20.69%. Vital Farms's revenue for the quarter was up 28.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.23 earnings per share. Sell-side analysts predict that Vital Farms will post 0.96 earnings per share for the current year.

Insider Activity

In other news, major shareholder Matthew Ohayer sold 20,000 shares of Vital Farms stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $20.33, for a total value of $406,600.00. Following the sale, the insider directly owned 6,321,190 shares of the company's stock, valued at approximately $128,509,792.70. The trade was a 0.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Karl Khoury bought 5,000 shares of Vital Farms stock in a transaction dated Monday, March 9th. The stock was purchased at an average cost of $18.45 per share, for a total transaction of $92,250.00. Following the completion of the acquisition, the director directly owned 119,789 shares of the company's stock, valued at approximately $2,210,107.05. The trade was a 4.36% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 21.30% of the company's stock.

Institutional Investors Weigh In On Vital Farms

Large investors have recently made changes to their positions in the company. Divisadero Street Capital Management LP increased its holdings in shares of Vital Farms by 131.7% in the third quarter. Divisadero Street Capital Management LP now owns 993,338 shares of the company's stock worth $40,876,000 after purchasing an additional 564,711 shares during the last quarter. Principal Financial Group Inc. increased its stake in Vital Farms by 23.1% during the third quarter. Principal Financial Group Inc. now owns 1,377,681 shares of the company's stock worth $56,692,000 after acquiring an additional 258,092 shares during the last quarter. Hussman Strategic Advisors Inc. bought a new stake in Vital Farms during the third quarter worth approximately $1,728,000. Citigroup Inc. increased its stake in Vital Farms by 554.1% during the third quarter. Citigroup Inc. now owns 95,258 shares of the company's stock worth $3,920,000 after acquiring an additional 80,694 shares during the last quarter. Finally, E. Ohman J or Asset Management AB bought a new stake in Vital Farms during the third quarter worth approximately $1,903,000. 98.59% of the stock is owned by institutional investors.

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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