Freshpet (NASDAQ:FRPT) Shares Break Above 200-Day Moving Average - Should You Sell?

Key Points

• Freshpet shares broke above their 200-day moving average, reaching $66.75 and recently trading near $66.05, compared with a 200-day average of $60.74.
• Analysts hold a consensus “Hold” rating with an average price target of $75.44; recent firms lowered targets, including Wells Fargo to $77 and Morgan Stanley to $72.
• Freshpet exceeded quarterly earnings and revenue estimates, reporting $0.39 EPS and $305.59 million in revenue, while quarterly revenue grew 15.4% year over year. Insiders sold $12.75 million of stock over the past 90 days.

Freshpet, Inc. (NASDAQ:FRPT - Get Free Report) shares crossed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $60.74 and traded as high as $66.75. Freshpet shares last traded at $66.05, with a volume of 840,797 shares changing hands.

Analysts Set New Price Targets

FRPT has been the topic of a number of recent analyst reports. Wells Fargo & Company lowered their price target on shares of Freshpet from $82.00 to $77.00 and set an "overweight" rating on the stock in a report on Monday, October 5th. Morgan Stanley reaffirmed an "equal weight" rating and set a $72.00 price objective (down from $77.00) on shares of Freshpet in a research note on Thursday, August 6th. Needham & Company LLC initiated coverage on shares of Freshpet in a research note on Thursday, October 1st. They set a "hold" rating for the company. Weiss Ratings raised shares of Freshpet from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, September 28th. Finally, Benchmark reiterated a "buy" rating on shares of Freshpet in a research note on Wednesday, August 19th. Ten investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $75.44.

Freshpet Stock Down 0.1%

The company has a 50 day moving average of $66.44 and a 200-day moving average of $60.74. The company has a debt-to-equity ratio of 0.34, a current ratio of 6.05 and a quick ratio of 5.03. The company has a market cap of $3.25 billion, a P/E ratio of 17.38 and a beta of 1.78.

Freshpet (NASDAQ:FRPT - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.39 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.17. Freshpet had a net margin of 17.28% and a return on equity of 5.97%. The business had revenue of $305.59 million for the quarter, compared to the consensus estimate of $292.35 million. During the same period last year, the firm posted $0.33 earnings per share. Freshpet's quarterly revenue was up 15.4% on a year-over-year basis. On average, equities analysts predict that Freshpet, Inc. will post 1.27 earnings per share for the current year.

Insiders Place Their Bets

In other Freshpet news, Director Walter George bought 1,000 shares of Freshpet stock in a transaction that occurred on Monday, September 14th. The shares were bought at an average price of $64.92 per share, with a total value of $64,920.00. Following the acquisition, the director owned 51,746 shares in the company, valued at approximately $3,359,350.32. This trade represents a 1.97% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO William Cyr sold 2,657 shares of Freshpet stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $75.40, for a total transaction of $200,337.80. Following the completion of the transaction, the chief executive officer owned 49,044 shares in the company, valued at approximately $3,697,917.60. The trade was a 5.14% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 171,636 shares of company stock valued at $12,754,864 in the last ninety days. 4.30% of the stock is owned by corporate insiders.

Institutional Trading of Freshpet

Several institutional investors have recently added to or reduced their stakes in FRPT. Caitong International Asset Management Co. Ltd boosted its position in Freshpet by 606.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 417 shares of the company's stock valued at $25,000 after buying an additional 358 shares during the period. Global Retirement Partners LLC bought a new stake in Freshpet in the 2nd quarter worth $25,000. Integrated Wealth Concepts LLC bought a new stake in Freshpet in the 2nd quarter worth $34,000. State of Wyoming bought a new stake in Freshpet in the 2nd quarter worth $61,000. Finally, Versant Capital Management Inc increased its position in shares of Freshpet by 254.8% in the second quarter. Versant Capital Management Inc now owns 1,689 shares of the company's stock valued at $100,000 after acquiring an additional 1,213 shares during the period.

Freshpet Company Profile

Freshpet, Inc NASDAQ: FRPT is a pet food company that develops, manufactures and markets refrigerated, fresh food and treats for dogs and cats. Its products are made with animal proteins, vegetables and other ingredients and are designed to be stored in the refrigerator rather than on a conventional shelf.

The company sells its products under the Freshpet brand and related product lines, including Freshpet Select and Vital. Its offerings include refrigerated meals, rolls, recipes and treats formulated for different pet sizes, ages and dietary needs.

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