Trupanion (NASDAQ:TRUP) Sets New 52-Week Low Following Analyst Downgrade

Key Points

• Cantor Fitzgerald cut its price target from $42 to $34 and the stock hit a new 52-week low, trading as low as $24.29 (last $24.35) on volume of about 150,957 shares.
• Several analysts have lowered ratings or targets (Weiss to sell; Stifel, Piper and Zacks cut targets/ratings), leaving a consensus Hold and an average price target of $42.50—well above the current share price.
• Insiders sold 21,502 shares (~$580,315) in the past 90 days (insider ownership 5.42%), even as institutional investors like Polar Capital, State Street, Marshall Wace and Millennium materially increased their stakes.

Trupanion, Inc. (NASDAQ:TRUP - Get Free Report) shares hit a new 52-week low during mid-day trading on Friday after Cantor Fitzgerald lowered their price target on the stock from $42.00 to $34.00. Cantor Fitzgerald currently has a neutral rating on the stock. Trupanion traded as low as $24.29 and last traded at $24.3540, with a volume of 150957 shares changing hands. The stock had previously closed at $25.74.

Other equities research analysts also recently issued reports about the company. Weiss Ratings downgraded Trupanion from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, March 4th. Stifel Nicolaus dropped their price target on Trupanion from $35.00 to $31.00 and set a "hold" rating on the stock in a research note on Tuesday, March 31st. Piper Sandler dropped their price target on Trupanion from $60.00 to $45.00 and set an "overweight" rating on the stock in a research note on Friday, February 13th. Finally, Zacks Research downgraded Trupanion from a "strong-buy" rating to a "hold" rating in a research note on Friday, February 13th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $42.50.

Insider Transactions at Trupanion

In other news, CFO Fawwad Qureshi sold 2,837 shares of the company's stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $26.46, for a total value of $75,067.02. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CRO Emily Dreyer sold 7,792 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $28.15, for a total value of $219,344.80. Following the completion of the transaction, the executive directly owned 35,627 shares of the company's stock, valued at approximately $1,002,900.05. This represents a 17.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 21,502 shares of company stock valued at $580,315 over the last ninety days. 5.42% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Trupanion

Several institutional investors and hedge funds have recently bought and sold shares of the company. Polar Capital Holdings Plc raised its position in shares of Trupanion by 13.5% in the fourth quarter. Polar Capital Holdings Plc now owns 1,475,000 shares of the financial services provider's stock worth $55,121,000 after buying an additional 175,000 shares in the last quarter. State Street Corp raised its position in shares of Trupanion by 2.2% in the fourth quarter. State Street Corp now owns 1,290,987 shares of the financial services provider's stock worth $48,244,000 after buying an additional 27,385 shares in the last quarter. Marshall Wace LLP raised its position in shares of Trupanion by 4.5% in the fourth quarter. Marshall Wace LLP now owns 1,267,262 shares of the financial services provider's stock worth $47,358,000 after buying an additional 55,111 shares in the last quarter. Greenlea Lane Capital Management LLC raised its position in shares of Trupanion by 1.6% in the fourth quarter. Greenlea Lane Capital Management LLC now owns 776,490 shares of the financial services provider's stock worth $29,017,000 after buying an additional 12,395 shares in the last quarter. Finally, Millennium Management LLC raised its position in shares of Trupanion by 185.8% in the third quarter. Millennium Management LLC now owns 619,003 shares of the financial services provider's stock worth $26,790,000 after buying an additional 402,421 shares in the last quarter.

Trupanion Stock Down 4.8%

The company has a quick ratio of 1.69, a current ratio of 1.69 and a debt-to-equity ratio of 0.27. The company has a market cap of $1.06 billion, a PE ratio of 54.46 and a beta of 1.66. The stock has a 50-day moving average of $27.68 and a 200-day moving average of $34.66.

Trupanion (NASDAQ:TRUP - Get Free Report) last released its quarterly earnings results on Thursday, February 12th. The financial services provider reported $0.13 earnings per share for the quarter, missing analysts' consensus estimates of $0.14 by ($0.01). Trupanion had a net margin of 1.35% and a return on equity of 5.39%. The firm had revenue of $376.85 million for the quarter, compared to analysts' expectations of $375.89 million. During the same quarter in the previous year, the business earned $0.04 EPS. The company's revenue for the quarter was up 11.7% on a year-over-year basis. Sell-side analysts predict that Trupanion, Inc. will post 0.13 earnings per share for the current fiscal year.

About Trupanion

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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