Short Interest in Vital Farms, Inc. (NASDAQ:VITL) Increases By 19.1%

Key Points

• Short interest rose 19.1% in March to 10,246,712 shares as of March 31, equal to about 29.1% of shares sold short and a short-interest ratio of 3.4 days, signaling heavy bearish positioning.
• Shares traded around $12.81 (up 2.7% intraday) and are near their 12‑month low of $12.23, with a market cap of about $574 million and a P/E of 8.88.
• Several analysts have cut price targets recently, though the consensus remains a "Moderate Buy" with a $38.58 target; insiders made small trades (one major shareholder sold 20,000 shares while a director bought 5,000) and institutional ownership is very high (~98.6%).

Vital Farms, Inc. (NASDAQ:VITL - Get Free Report) was the target of a significant increase in short interest during the month of March. As of March 31st, there was short interest totaling 10,246,712 shares, an increase of 19.1% from the March 15th total of 8,602,326 shares. Based on an average daily volume of 3,017,050 shares, the short-interest ratio is presently 3.4 days. Approximately 29.1% of the company's shares are sold short.

Vital Farms Stock Up 2.7%

Shares of VITL traded up $0.34 during midday trading on Friday, reaching $12.81. 575,925 shares of the stock were exchanged, compared to its average volume of 2,226,675. Vital Farms has a 12-month low of $12.23 and a 12-month high of $53.13. The firm has a 50 day simple moving average of $18.69 and a 200-day simple moving average of $28.37. The company has a quick ratio of 1.61, a current ratio of 2.16 and a debt-to-equity ratio of 0.01. The company has a market cap of $573.80 million, a price-to-earnings ratio of 8.88 and a beta of 1.35.

Vital Farms (NASDAQ:VITL - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported $0.35 earnings per share for the quarter, missing analysts' consensus estimates of $0.38 by ($0.03). Vital Farms had a return on equity of 20.69% and a net margin of 8.73%.The firm had revenue of $213.55 million for the quarter, compared to analysts' expectations of $212.83 million. During the same period last year, the business earned $0.23 earnings per share. The firm's revenue for the quarter was up 28.6% on a year-over-year basis. Research analysts forecast that Vital Farms will post 1.11 EPS for the current year.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. Mizuho reduced their target price on Vital Farms from $48.00 to $40.00 and set an "outperform" rating for the company in a report on Monday, March 2nd. Zacks Research downgraded Vital Farms from a "hold" rating to a "strong sell" rating in a research note on Monday, March 2nd. Craig Hallum reduced their price objective on Vital Farms from $55.00 to $20.00 and set a "buy" rating for the company in a research note on Thursday, April 2nd. Needham & Company LLC reduced their price objective on Vital Farms from $35.00 to $20.00 and set a "buy" rating for the company in a research note on Friday, March 27th. Finally, BMO Capital Markets reduced their price objective on Vital Farms from $60.00 to $50.00 and set an "outperform" rating for the company in a research note on Thursday, December 18th. Nine equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Vital Farms presently has a consensus rating of "Moderate Buy" and a consensus price target of $38.58.

Insider Buying and Selling at Vital Farms

In other news, major shareholder Matthew Ohayer sold 20,000 shares of the company's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $20.33, for a total transaction of $406,600.00. Following the completion of the sale, the insider directly owned 6,321,190 shares of the company's stock, valued at $128,509,792.70. This represents a 0.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Karl Khoury bought 5,000 shares of Vital Farms stock in a transaction dated Monday, March 9th. The shares were bought at an average cost of $18.45 per share, with a total value of $92,250.00. Following the completion of the acquisition, the director owned 119,789 shares of the company's stock, valued at $2,210,107.05. The trade was a 4.36% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 21.30% of the company's stock.

Institutional Investors Weigh In On Vital Farms

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of Vital Farms by 22.9% during the 4th quarter. Vanguard Group Inc. now owns 2,845,714 shares of the company's stock worth $90,892,000 after purchasing an additional 530,008 shares in the last quarter. Wasatch Advisors LP raised its stake in shares of Vital Farms by 13.7% in the 4th quarter. Wasatch Advisors LP now owns 2,687,246 shares of the company's stock valued at $85,831,000 after acquiring an additional 324,725 shares in the last quarter. Wellington Management Group LLP raised its stake in shares of Vital Farms by 1.3% in the 4th quarter. Wellington Management Group LLP now owns 2,047,955 shares of the company's stock valued at $65,412,000 after acquiring an additional 26,150 shares in the last quarter. Principal Financial Group Inc. raised its stake in shares of Vital Farms by 10.4% in the 4th quarter. Principal Financial Group Inc. now owns 1,520,471 shares of the company's stock valued at $48,564,000 after acquiring an additional 142,790 shares in the last quarter. Finally, State Street Corp raised its stake in shares of Vital Farms by 64.7% in the 4th quarter. State Street Corp now owns 1,293,788 shares of the company's stock valued at $41,324,000 after acquiring an additional 508,222 shares in the last quarter. 98.59% of the stock is owned by hedge funds and other institutional investors.

About Vital Farms

Vital Farms, traded on the NASDAQ under the symbol VITL, is a U.S.-based food company specializing in pasture-raised egg and dairy products. The company partners with a network of family farms across the United States to produce eggs, butter and related items under a certified humane, pasture-centric farming model. Vital Farms' supply chain emphasizes animal welfare, environmental stewardship and transparent sourcing, appealing to consumers seeking ethically produced, high-quality ingredients.

Founded in 2007 and headquartered in Austin, Texas, Vital Farms began by marketing pasture-raised eggs to health- and ethically minded shoppers.

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