UFP Technologies (NASDAQ:UFPT) Shares Gap Up After Strong Earnings

Key Points

• UFP Technologies beat quarterly expectations, reporting EPS of $2.88 versus the $2.49 consensus and revenue of $172.43 million versus $166.89 million expected.
• Shares jumped after the report, opening at $306.54 after closing at $280.32 and later trading at about $318.27.
• Analyst sentiment remained mixed, with MarketBeat reporting an average “Hold” rating. Insiders sold 25,919 shares worth about $8.17 million in the last quarter.

Shares of UFP Technologies, Inc. (NASDAQ:UFPT - Get Free Report) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $280.32, but opened at $306.54. UFP Technologies shares last traded at $318.2690, with a volume of 80,618 shares changing hands.

The industrial products company reported $2.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.49 by $0.39. The business had revenue of $172.43 million during the quarter, compared to analysts' expectations of $166.89 million. UFP Technologies had a net margin of 11.45% and a return on equity of 18.42%.

Analysts Set New Price Targets

Several equities research analysts recently commented on UFPT shares. Wall Street Zen upgraded UFP Technologies from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Weiss Ratings restated a "hold (c+)" rating on shares of UFP Technologies in a research note on Tuesday. Two analysts have rated the stock with a Hold rating. According to MarketBeat.com, the company has an average rating of "Hold".

Insider Activity at UFP Technologies

In related news, Director Cynthia L. Feldmann sold 1,000 shares of the company's stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $324.26, for a total transaction of $324,260.00. Following the completion of the sale, the director owned 4,476 shares in the company, valued at approximately $1,451,387.76. This represents a 18.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Symeria Hudson sold 298 shares of the company's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $319.11, for a total value of $95,094.78. Following the sale, the director owned 927 shares of the company's stock, valued at approximately $295,814.97. This trade represents a 24.33% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 25,919 shares of company stock valued at $8,173,084 in the last quarter. 4.59% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On UFP Technologies

Hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new position in shares of UFP Technologies in the second quarter worth about $302,622,000. Neumeier Poma Investment Counsel LLC bought a new stake in UFP Technologies during the 2nd quarter valued at approximately $22,423,370. De Lisle Partners LLP bought a new stake in UFP Technologies during the 2nd quarter valued at approximately $19,677,000. Bank of America Corp DE bought a new stake in shares of UFP Technologies during the second quarter valued at approximately $15,991,000. Finally, Diamond Hill Capital Management LLC Investment Advisor bought a new stake in shares of UFP Technologies during the second quarter valued at approximately $14,629,000. Hedge funds and other institutional investors own 87.28% of the company's stock.

UFP Technologies Price Performance

The firm's fifty day moving average price is $290.73 and its 200 day moving average price is $250.14. The company has a quick ratio of 1.72, a current ratio of 3.00 and a debt-to-equity ratio of 0.26. The stock has a market cap of $2.49 billion, a PE ratio of 34.59 and a beta of 1.09.

About UFP Technologies

UFP Technologies, Inc NASDAQ: UFPT is a designer and manufacturer of engineered components, assemblies and packaging solutions, with a primary focus on the medical device and healthcare markets. The company works with original equipment manufacturers and other customers to develop products used in surgical, orthopedic, diagnostic, wound-care and other medical applications.

Its capabilities include converting and fabricating advanced materials such as foams, films, laminates, textiles and composites, as well as molding plastics and producing complex assembled products.

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