Trupanion (NASDAQ:TRUP) Stock Price Down 5.2% - Time to Sell?

Key Points

• Trupanion shares fell 5.2% to about $23.70, with trading volume roughly 85% below the average session volume.
• Analyst sentiment is cautious: five analysts rate the stock Hold and one rates it Buy, while the average price target is $39.20. Piper Sandler recently downgraded the shares to Neutral and cut its target to $32.
• Despite the stock decline, Trupanion beat quarterly earnings and revenue expectations, reporting $0.16 EPS and $392.93 million in revenue, up 11.1% year over year. Insiders sold 13,046 shares over the past three months, while several institutional investors increased their positions.

Trupanion, Inc. (NASDAQ:TRUP - Get Free Report)'s stock price dropped 5.2% during trading on Tuesday . The company traded as low as $23.86 and last traded at $23.7020. Approximately 64,731 shares changed hands during trading, a decline of 85% from the average session volume of 438,667 shares. The stock had previously closed at $25.00.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on TRUP shares. Piper Sandler lowered shares of Trupanion from an "overweight" rating to a "neutral" rating and decreased their price objective for the stock from $45.00 to $32.00 in a report on Wednesday, August 26th. Weiss Ratings downgraded Trupanion from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, September 10th. Zacks Research cut Trupanion from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 24th. Atlantic Securities set a $42.00 price target on Trupanion in a report on Wednesday, July 15th. Finally, Stifel Nicolaus raised their price target on shares of Trupanion from $28.00 to $29.00 and gave the company a "hold" rating in a report on Thursday, August 20th. One investment analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $39.20.

Trupanion Stock Down 4.8%

The company has a market capitalization of $1.04 billion, a PE ratio of 44.90, a P/E/G ratio of 1.69 and a beta of 1.45. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.77 and a quick ratio of 1.77. The company has a 50-day moving average of $27.30 and a two-hundred day moving average of $25.72.

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

Insider Buying and Selling at Trupanion

In related news, COO John R. Gallagher sold 3,604 shares of the firm's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $29.70, for a total transaction of $107,038.80. Following the completion of the transaction, the chief operating officer directly owned 33,742 shares of the company's stock, valued at approximately $1,002,137.40. This trade represents a 9.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Fawwad Qureshi sold 6,111 shares of Trupanion stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $30.01, for a total transaction of $183,391.11. Following the completion of the sale, the chief financial officer owned 4,230 shares in the company, valued at approximately $126,942.30. This represents a 59.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 13,046 shares of company stock valued at $381,210 in the last three months. 5.58% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. BlackRock Inc. purchased a new position in shares of Trupanion during the second quarter valued at approximately $134,774,000. Polar Capital Holdings Plc increased its holdings in Trupanion by 13.5% during the fourth quarter. Polar Capital Holdings Plc now owns 1,475,000 shares of the financial services provider's stock valued at $55,121,000 after buying an additional 175,000 shares during the period. Greenlea Lane Capital Management LLC raised its position in shares of Trupanion by 1.6% in the 4th quarter. Greenlea Lane Capital Management LLC now owns 776,490 shares of the financial services provider's stock worth $29,017,000 after acquiring an additional 12,395 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Trupanion by 15.7% during the first quarter. Dimensional Fund Advisors LP now owns 702,086 shares of the financial services provider's stock valued at $17,981,000 after buying an additional 95,064 shares during the last quarter. Finally, Bank of America Corp DE purchased a new stake in Trupanion during the second quarter valued at approximately $14,262,000.

About Trupanion

Trupanion, Inc is a pet insurance company that provides medical coverage for cats and dogs. Its subscription-based policies are designed to help pet owners manage the cost of eligible veterinary care, including coverage for unexpected illnesses and injuries. Depending on the policy and jurisdiction, coverage may include diagnostic tests, surgeries, hospital stays and prescription medications, subject to applicable terms, exclusions and deductibles.

The company also develops technology intended to simplify the relationship between pet owners, veterinarians and insurers.

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