Once Upon A Farm (NYSE:OFRM) Sets New 12-Month Low - What's Next?

Key Points

• OFRM shares fell 38.3% to a new 52-week low of $9.07, down from a previous close of $15.02, as investors reacted to mounting uncertainty.
• The company’s snack bars were recalled nationwide over a potentially serious choking hazard, raising concerns about lost sales, recall costs, retailer disruption and reputational damage.
• A law firm announced an investigation into potential securities-law violations related to company disclosures, adding litigation risk; analysts nevertheless maintain a consensus “Hold” rating with an average price target of $25.72.

Once Upon A Farm (NYSE:OFRM - Get Free Report) shares reached a new 52-week low during trading on Monday. The stock traded as low as $9.07 and last traded at $9.2740, with a volume of 7,902,585 shares trading hands. The stock had previously closed at $15.02.

Key Stories Impacting Once Upon A Farm

Here are the key news stories impacting Once Upon A Farm this week:

• Neutral Sentiment: The company held a shareholder and analyst call, but the available reports do not identify a new operating or financial catalyst that would offset the recall-related concerns. Shareholder/Analyst Call Transcript
• Negative Sentiment: Once Upon A Farm’s snack bars were recalled nationwide over a potential choking hazard, following reports involving toddlers. Coverage characterized the risk as potentially fatal, increasing the possibility of lost sales, product-recall expenses, retailer disruption and damage to consumer trust. Snack Bars Recalled Over Choking Hazard
• Negative Sentiment: Additional market coverage linked the sharp decline in OFRM to the recall, indicating investors are pricing in heightened uncertainty around the company’s products and near-term performance. Jennifer Garner’s Once Upon a Farm Stock Sinks on Product Recall
• Negative Sentiment: The Law Offices of Frank R. Cruz announced an investigation into potential securities-law violations related to the company’s disclosures on November 2. The announcement does not establish wrongdoing, but it adds litigation risk and may further pressure investor sentiment after the product-safety news. Securities Fraud Investigation Announcement

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on OFRM. Freedom Broker started coverage on shares of Once Upon A Farm in a report on Thursday, October 8th. They issued a "buy" rating and a $24.50 target price for the company. Barclays increased their price target on shares of Once Upon A Farm from $18.00 to $19.00 and gave the stock an "equal weight" rating in a research note on Monday, August 10th. JPMorgan Chase & Co. lifted their price target on shares of Once Upon A Farm from $22.00 to $26.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Weiss Ratings raised shares of Once Upon A Farm from a "sell (e-)" rating to a "sell (e)" rating in a research note on Wednesday, August 12th. Finally, Wall Street Zen downgraded Once Upon A Farm from a "hold" rating to a "sell" rating in a report on Saturday, October 24th. Six investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Once Upon A Farm presently has a consensus rating of "Hold" and an average price target of $25.72.

Once Upon A Farm Trading Down 38.3%

The stock has a fifty day moving average price of $16.47 and a 200-day moving average price of $17.46.

Once Upon A Farm (NYSE:OFRM - Get Free Report) last posted its earnings results on Thursday, August 6th. The organic kids food company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.18) by $0.06. The business had revenue of $85.39 million for the quarter. As a group, research analysts expect that Once Upon A Farm will post -0.22 earnings per share for the current fiscal year.

Institutional Trading of Once Upon A Farm

A number of institutional investors have recently added to or reduced their stakes in OFRM. State of Alaska Department of Revenue acquired a new position in shares of Once Upon A Farm during the third quarter worth about $39,000. Bank of New York Mellon Corp acquired a new stake in shares of Once Upon A Farm in the second quarter valued at about $781,000. Inspire Investing LLC acquired a new stake in shares of Once Upon A Farm in the third quarter valued at about $638,000. Lisanti Capital Growth LLC purchased a new stake in shares of Once Upon A Farm during the 2nd quarter valued at about $1,665,000. Finally, Public Employees Retirement System of Ohio raised its holdings in shares of Once Upon A Farm by 18.6% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 86,967 shares of the organic kids food company's stock valued at $1,781,000 after buying an additional 13,611 shares during the period.

About Once Upon A Farm

Once Upon a Farm is a U.S.-based food company focused on organic, refrigerated foods for babies, children and families. Its products are designed around fruits, vegetables and other minimally processed ingredients.

The company's offerings have included refrigerated baby food pouches, toddler meals, kids' snacks, smoothies and other family-oriented products. Once Upon a Farm distributes its products through grocery retailers, mass merchants and online channels in the United States.

The company was founded in 2015 by Cassandra Curtis, Ari Raz and John Foraker, with actress and entrepreneur Jennifer Garner joining as a co-founder and brand partner.

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