Trupanion (NASDAQ:TRUP) Shares Gap Up Following Strong Earnings

Trupanion, Inc. (NASDAQ:TRUP - Get Free Report)'s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $36.44, but opened at $40.73. Trupanion shares last traded at $43.12, with a volume of 324,709 shares changing hands.

The financial services provider reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.02. The company had revenue of $341.98 million for the quarter, compared to analyst estimates of $337.81 million. Trupanion had a negative net margin of 0.75% and a negative return on equity of 3.08%. The company's quarterly revenue was up 11.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.16) earnings per share.

Analyst Upgrades and Downgrades

TRUP has been the topic of a number of analyst reports. Piper Sandler decreased their price objective on Trupanion from $57.00 to $52.00 and set an "overweight" rating on the stock in a research note on Thursday, February 20th. Lake Street Capital decreased their price target on Trupanion from $65.00 to $60.00 and set a "buy" rating on the stock in a research report on Friday. Finally, Stifel Nicolaus cut their price objective on shares of Trupanion from $44.00 to $41.00 and set a "hold" rating for the company in a research report on Thursday, February 20th. Two equities research analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $51.80.

Insider Buying and Selling

In related news, CFO Fawwad Qureshi sold 1,373 shares of the stock in a transaction on Wednesday, February 26th. The stock was sold at an average price of $34.22, for a total value of $46,984.06. Following the transaction, the chief financial officer now owns 2,416 shares of the company's stock, valued at $82,675.52. This represents a 36.24 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Emily Dreyer sold 14,025 shares of the firm's stock in a transaction dated Friday, March 7th. The shares were sold at an average price of $32.41, for a total value of $454,550.25. Following the sale, the senior vice president now owns 27,645 shares in the company, valued at $895,974.45. The trade was a 33.66 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 33,792 shares of company stock worth $1,122,802. Insiders own 5.50% of the company's stock.

Hedge Funds Weigh In On Trupanion

Several institutional investors have recently modified their holdings of TRUP. Balyasny Asset Management L.P. boosted its stake in Trupanion by 368.2% in the fourth quarter. Balyasny Asset Management L.P. now owns 841,254 shares of the financial services provider's stock worth $40,548,000 after buying an additional 661,559 shares in the last quarter. BNP Paribas Financial Markets lifted its holdings in shares of Trupanion by 170.7% in the 4th quarter. BNP Paribas Financial Markets now owns 337,093 shares of the financial services provider's stock worth $16,248,000 after acquiring an additional 212,545 shares during the last quarter. Freestone Grove Partners LP purchased a new stake in shares of Trupanion in the 4th quarter valued at $7,776,000. Baillie Gifford & Co. grew its holdings in shares of Trupanion by 26.6% during the 4th quarter. Baillie Gifford & Co. now owns 701,366 shares of the financial services provider's stock valued at $33,806,000 after purchasing an additional 147,341 shares during the last quarter. Finally, First Trust Advisors LP purchased a new position in Trupanion in the 4th quarter worth $7,083,000.

Trupanion Price Performance

The firm's 50 day simple moving average is $35.60 and its two-hundred day simple moving average is $44.80. The firm has a market capitalization of $1.90 billion, a P/E ratio of -194.83, a P/E/G ratio of 6.02 and a beta of 1.66. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.71 and a quick ratio of 1.66.

About Trupanion

Trupanion, Inc, together with its subsidiaries, provides medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Continental Europe, and Australia. The company operates in two segments, Subscription Business and Other Business. It serves pet owners and veterinarians.