Trupanion (NASDAQ:TRUP) Shares Gap Down - Time to Sell?

Key Points

• Trupanion shares fell sharply at the open, dropping from a prior close of $31.84 to $30.09 and last trading near $30.01.
• Analyst sentiment is cautious: one analyst rates the stock a Buy while five recommend Hold, producing a consensus Hold rating and a $39.20 price target. Piper Sandler downgraded the shares to Neutral, while Zacks Research also moved its rating to Hold.
• The company exceeded quarterly expectations, reporting $0.16 in EPS versus $0.11 expected and $392.93 million in revenue, up 11.1% year over year. However, insiders have sold 12,117 shares worth about $275,123 over the past 90 days.

Trupanion, Inc. (NASDAQ:TRUP - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $31.84, but opened at $30.09. Trupanion shares last traded at $30.0080, with a volume of 106,940 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on TRUP. Weiss Ratings upgraded shares of Trupanion from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, August 12th. Zacks Research downgraded Trupanion from a "strong-buy" rating to a "hold" rating in a research report on Monday. Atlantic Securities set a $42.00 price objective on Trupanion in a research note on Wednesday, July 15th. Piper Sandler cut shares of Trupanion from an "overweight" rating to a "neutral" rating and set a $32.00 target price on the stock. in a research note on Wednesday. Finally, Stifel Nicolaus upped their price target on shares of Trupanion from $28.00 to $29.00 and gave the stock a "hold" rating in a research report on Thursday, August 20th. One analyst has rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, Trupanion has a consensus rating of "Hold" and a consensus target price of $39.20.

Trupanion Price Performance

The stock has a market cap of $1.31 billion, a PE ratio of 56.48, a P/E/G ratio of 2.15 and a beta of 1.39. The firm's fifty day moving average price is $26.63 and its 200 day moving average price is $26.02. The company has a quick ratio of 1.77, a current ratio of 1.77 and a debt-to-equity ratio of 0.24.

Trupanion (NASDAQ:TRUP - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The financial services provider reported $0.16 EPS for the quarter, beating analysts' consensus estimates of $0.11 by $0.05. The company had revenue of $392.93 million during the quarter, compared to analyst estimates of $389.72 million. Trupanion had a return on equity of 5.96% and a net margin of 1.53%.The firm's revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.22 earnings per share. As a group, equities analysts expect that Trupanion, Inc. will post 0.63 EPS for the current fiscal year.

Insider Buying and Selling

In other Trupanion news, EVP Steve Weinrauch sold 6,674 shares of the business's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $22.00, for a total value of $146,828.00. Following the completion of the sale, the executive vice president directly owned 78,062 shares of the company's stock, valued at $1,717,364. The trade was a 7.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Margaret Tooth sold 978 shares of the business's stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $29.05, for a total value of $28,410.90. Following the completion of the sale, the chief executive officer owned 175,401 shares of the company's stock, valued at $5,095,399.05. The trade was a 0.55% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,117 shares of company stock valued at $275,123 in the last 90 days. Company insiders own 5.58% of the company's stock.

Hedge Funds Weigh In On Trupanion

Institutional investors have recently made changes to their positions in the company. Kelleher Financial Advisors purchased a new position in Trupanion during the second quarter valued at approximately $42,000. Parallel Advisors LLC raised its position in shares of Trupanion by 1,831.9% in the 1st quarter. Parallel Advisors LLC now owns 1,816 shares of the financial services provider's stock worth $47,000 after acquiring an additional 1,722 shares in the last quarter. Kemnay Advisory Services Inc. purchased a new stake in shares of Trupanion during the 4th quarter worth $64,000. Quantbot Technologies LP purchased a new stake in shares of Trupanion during the 2nd quarter worth $89,000. Finally, Advisory Services Network LLC bought a new stake in Trupanion during the third quarter valued at about $160,000.

Trupanion Company Profile

Trupanion, Inc is a pet medical insurance company that provides comprehensive insurance coverage for cats and dogs. The company's core offering is a single, customizable medical policy designed to cover veterinary diagnostic tests, surgeries, hospital stays and congenital or hereditary conditions. Trupanion seeks to streamline the claims process by offering direct payment options to participating veterinarians, reducing the need for upfront payments by pet owners.

Founded in 1999 by Darryl Rawlings and headquartered in Seattle, Washington, Trupanion began operations in the early 2000s and has grown its presence through both digital channels and partnerships with veterinary hospitals.

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