Medifast (NYSE:MED) Shares Break Above 200-Day Moving Average - What's Next?

Key Points

• Medifast shares rose above their 200-day moving average, reaching $11.76 and last trading near $11.69, compared with the 200-day average of $11.43.
• Analyst sentiment remains cautious: the stock has an average rating of “Reduce” and a consensus price target of $12.00, with two analysts rating it Hold and one Sell.
• Medifast beat quarterly earnings and revenue expectations, but remains unprofitable; insiders have been net buyers recently, while institutional investors own approximately 95.5% of the stock.

Medifast Inc (NYSE:MED - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $11.43 and traded as high as $11.76. Medifast shares last traded at $11.6860, with a volume of 91,740 shares traded.

Analysts Set New Price Targets

MED has been the topic of a number of recent analyst reports. Zacks Research downgraded shares of Medifast from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 11th. Weiss Ratings upgraded shares of Medifast from a "sell (e+)" rating to a "sell (d)" rating in a research note on Monday, August 17th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus price target of $12.00.

Medifast Stock Performance

The firm has a market cap of $130.66 million, a P/E ratio of -5.02 and a beta of 0.68. The business's 50-day simple moving average is $11.96 and its 200 day simple moving average is $11.43.

Medifast (NYSE:MED - Get Free Report) last announced its 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. The business had revenue of $76.38 million during the quarter, compared to analyst estimates of $72.70 million. Medifast had a negative net margin of 8.08% and a negative return on equity of 6.69%. Medifast has set its FY 2026 guidance at -1.750--0.250 EPS and its Q3 2026 guidance at -0.650--0.150 EPS. As a group, equities research analysts expect that Medifast Inc will post -1.04 EPS for the current year.

Insider Buying and Selling at Medifast

In other news, Director Parsa Kiai acquired 43,150 shares of Medifast stock in a transaction that occurred on Wednesday, August 26th. The stock was bought at an average price of $12.26 per share, for a total transaction of $529,019.00. Following the completion of the transaction, the director owned 707,492 shares in the company, valued at $8,673,851.92. The trade was a 6.50% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Daniel Chard sold 9,544 shares of the company's stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $11.73, for a total value of $111,951.12. Following the sale, the director owned 130,609 shares of the company's stock, valued at approximately $1,532,043.57. This trade represents a 6.81% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders purchased 119,966 shares of company stock valued at $1,423,576 in the last ninety days. 3.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Medifast

A number of large investors have recently made changes to their positions in the company. Engineers Gate Manager LP lifted its stake in shares of Medifast by 25.9% in the 2nd quarter. Engineers Gate Manager LP now owns 49,829 shares of the specialty retailer's stock worth $529,000 after purchasing an additional 10,249 shares during the period. Squarepoint Ops LLC purchased a new position in shares of Medifast in the second quarter worth approximately $214,000. Chico Wealth RIA purchased a new position in shares of Medifast in the second quarter worth approximately $223,000. Ancora Advisors LLC purchased a new position in shares of Medifast in the second quarter worth approximately $75,000. Finally, Empowered Funds LLC bought a new stake in Medifast during the second quarter valued at approximately $701,000. 95.51% of the stock is currently owned by institutional investors.

Medifast Company Profile

Medifast, Inc is a health and wellness company that provides weight-management and healthy-living products and services. Its primary brand, OPTAVIA, offers meal replacements, snacks, supplements and other nutrition products designed to support structured weight-management programs.

The company's programs combine nutrition products with guidance from independent OPTAVIA Coaches. These coaches provide accountability, support and lifestyle guidance intended to help clients develop healthier eating and activity habits.

Medifast was founded in 1980 and is headquartered in Baltimore, Maryland.

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