Medifast (NYSE:MED) Stock Price Crosses Above 200 Day Moving Average - Here's What Happened

Key Points

• Medifast shares crossed above their 200-day moving average, reaching $12.20 before trading near $12.03, compared with a 200-day average of $11.21.
• Analysts remain cautious, with a consensus rating of “Reduce” and a $12.00 target price. The company reported better-than-expected quarterly results, but continues to post negative margins and has issued negative EPS guidance.
• Insider buying has increased, including a director’s purchase of 43,150 shares worth about $529,000; insiders bought nearly 120,000 shares over the past three months.

Medifast Inc (NYSE:MED - Get Free Report)'s share price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $11.21 and traded as high as $12.20. Medifast shares last traded at $12.0260, with a volume of 62,331 shares changing hands.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Weiss Ratings raised Medifast from a "sell (e+)" rating to a "sell (d)" rating in a report on Monday, August 17th. Zacks Research lowered shares of Medifast from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 11th. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus target price of $12.00.

Medifast Trading Down 0.1%

The stock has a 50 day moving average price of $11.34 and a two-hundred day moving average price of $11.21. The company has a market cap of $134.45 million, a price-to-earnings ratio of -5.16 and a beta of 0.71.

Medifast (NYSE:MED - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The specialty retailer reported ($0.28) EPS for the quarter, topping analysts' consensus estimates of ($0.65) by $0.37. The business had revenue of $76.38 million during the quarter, compared to analysts' expectations of $72.70 million. Medifast had a negative return on equity of 6.69% and a negative net margin of 8.08%.Medifast has set its FY 2026 guidance at -1.750--0.250 EPS and its Q3 2026 guidance at -0.650--0.150 EPS. On average, equities analysts forecast that Medifast Inc will post -1.04 EPS for the current fiscal year.

Insider Activity

In related news, Director Parsa Kiai bought 43,150 shares of the firm's stock in a transaction dated Wednesday, August 26th. The stock was bought at an average cost of $12.26 per share, for a total transaction of $529,019.00. Following the transaction, the director owned 707,492 shares of the company's stock, valued at $8,673,851.92. This represents a 6.50% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. In the last three months, insiders bought 119,966 shares of company stock worth $1,423,576. 3.70% of the stock is currently owned by insiders.

Institutional Trading of Medifast

Hedge funds have recently modified their holdings of the company. State of Wyoming increased its stake in Medifast by 19.8% in the first quarter. State of Wyoming now owns 6,646 shares of the specialty retailer's stock valued at $68,000 after purchasing an additional 1,097 shares in the last quarter. Ancora Advisors LLC acquired a new stake in Medifast in the second quarter worth $75,000. Ieq Capital LLC bought a new position in shares of Medifast during the second quarter worth $114,000. Squarepoint Ops LLC bought a new position in shares of Medifast during the second quarter worth $214,000. Finally, Chico Wealth RIA acquired a new position in shares of Medifast in the 2nd quarter valued at $223,000. 95.51% of the stock is currently owned by institutional investors and hedge funds.

About Medifast

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.

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