Freshpet (NASDAQ:FRPT) Shares Climb 5.3% - Still a Buy?

Key Points

• Freshpet shares rose 5.3% to about $68.04, while trading volume was 69% below its average.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $80.31; nine rate the stock Buy and seven Hold.
• Quarterly results beat estimates: EPS was $0.58 versus $0.39 expected, and revenue of $317.84 million was up 10.1% year over year.

Freshpet, Inc. (NASDAQ:FRPT - Get Free Report) rose 5.3% on Friday. The stock traded as high as $67.57 and last traded at $68.0440. Approximately 433,971 shares traded hands during mid-day trading, a decline of 69% from the average session volume of 1,388,315 shares. The stock had previously closed at $64.63.

Analysts Set New Price Targets

Several analysts have recently issued reports on FRPT shares. Morgan Stanley cut shares of Freshpet from an "overweight" rating to an "equal weight" rating and reduced their price target for the stock from $77.00 to $72.00 in a research report on Thursday, August 6th. Benchmark reiterated a "buy" rating on shares of Freshpet in a report on Wednesday, August 19th. Deutsche Bank set a $67.00 price target on shares of Freshpet in a research report on Wednesday, October 21st. Piper Sandler restated an "overweight" rating on shares of Freshpet in a research note on Monday, October 5th. Finally, DA Davidson cut their price objective on Freshpet from $101.00 to $95.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Nine research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $80.31.

Freshpet Price Performance

The firm has a market capitalization of $3.29 billion, a price-to-earnings ratio of 26.87 and a beta of 1.75. The stock's fifty day moving average price is $64.13 and its two-hundred day moving average price is $63.79. The company has a current ratio of 5.68, a quick ratio of 4.65 and a debt-to-equity ratio of 0.35.

Freshpet (NASDAQ:FRPT - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.39 by $0.19. Freshpet had a return on equity of 6.39% and a net margin of 10.90%. The company had revenue of $317.84 million during the quarter, compared to the consensus estimate of $312.02 million. During the same period in the previous year, the business earned $1.86 EPS. Freshpet's revenue for the quarter was up 10.1% on a year-over-year basis. Equities research analysts expect that Freshpet, Inc. will post 1.32 EPS for the current year.

Insider Transactions at Freshpet

In other Freshpet news, Director Walter N. George bought 1,000 shares of the company's stock in a transaction on Monday, September 14th. The shares were bought at an average price of $64.92 per share, for a total transaction of $64,920.00. Following the transaction, the director owned 51,746 shares of the company's stock, valued at approximately $3,359,350.32. This trade represents a 1.97% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO William B. Cyr sold 41,022 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $72.86, for a total value of $2,988,862.92. Following the transaction, the chief executive officer directly owned 267,152 shares of the company's stock, valued at approximately $19,464,694.72. This trade represents a 13.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 171,636 shares of company stock worth $12,754,864. Company insiders own 4.30% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Wellington Management Group LLP increased its holdings in shares of Freshpet by 11.8% in the 2nd quarter. Wellington Management Group LLP now owns 2,829,688 shares of the company's stock valued at $167,291,000 after purchasing an additional 298,460 shares in the last quarter. William Blair Investment Management LLC purchased a new position in Freshpet in the second quarter valued at about $107,066,000. Dimensional Fund Advisors LP lifted its position in shares of Freshpet by 9.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 917,785 shares of the company's stock valued at $54,103,000 after acquiring an additional 78,196 shares during the period. Jennison Associates LLC lifted its position in shares of Freshpet by 200.6% during the 1st quarter. Jennison Associates LLC now owns 651,202 shares of the company's stock valued at $38,395,000 after acquiring an additional 434,582 shares during the period. Finally, Alyeska Investment Group L.P. boosted its stake in shares of Freshpet by 146.5% during the 2nd quarter. Alyeska Investment Group L.P. now owns 552,400 shares of the company's stock worth $32,658,000 after acquiring an additional 328,259 shares in the last quarter.

Freshpet Company Profile

Freshpet, Inc. makes and markets fresh, refrigerated food and treats for dogs and cats. Founded in 2006, the company focuses on recipes made with fresh ingredients and positioned as an alternative to shelf-stable pet food. Its products are sold under brands including Freshpet, Freshpet Select, Vital and Nature's Fresh. Freshpet distributes them through refrigerated displays in grocery, mass-market, club and pet specialty stores, as well as through online retailers. The company primarily serves customers in the United States and Canada and also sells its products in select international markets.

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