Trupanion (NASDAQ:TRUP) Shares Gap Up on Earnings Beat

Key Points

• Trupanion shares surged from a closing price of $48.75 to open at $57.00 following a strong earnings report that exceeded expectations with an EPS of $0.22 compared to analysts' estimates of ($0.03).
• The company reported a revenue of $353.56 million for the quarter, exceeding analyst projections of $346.73 million, which represents a year-over-year growth of 12.3%.
• Analysts have varied opinions on Trupanion, with one firm raising its price target from $62.00 to $67.00 while another lowered it from $65.00 to $60.00, resulting in an average rating of "Moderate Buy" and a consensus price target of $54.80.

Trupanion, Inc. (NASDAQ:TRUP - Get Free Report)'s stock price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $48.75, but opened at $57.00. Trupanion shares last traded at $51.36, with a volume of 351,232 shares changing hands.

The financial services provider reported $0.22 earnings per share for the quarter, topping analysts' consensus estimates of ($0.03) by $0.25. Trupanion had a net margin of 0.81% and a return on equity of 3.38%. The business had revenue of $353.56 million during the quarter, compared to the consensus estimate of $346.73 million. During the same quarter in the prior year, the firm posted ($0.14) earnings per share. The company's revenue was up 12.3% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

TRUP has been the subject of several research analyst reports. Stifel Nicolaus upped their price target on shares of Trupanion from $41.00 to $45.00 and gave the stock a "hold" rating in a research report on Friday. Piper Sandler upped their price target on shares of Trupanion from $62.00 to $67.00 and gave the stock an "overweight" rating in a research report on Friday. Finally, Lake Street Capital reduced their price target on shares of Trupanion from $65.00 to $60.00 and set a "buy" rating for the company in a research report on Friday, May 2nd. Two equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, Trupanion presently has a consensus rating of "Moderate Buy" and an average price target of $55.60.

Insider Activity at Trupanion

In related news, CFO Fawwad Qureshi sold 2,534 shares of the company's stock in a transaction dated Thursday, May 29th. The shares were sold at an average price of $48.31, for a total transaction of $122,417.54. Following the completion of the sale, the chief financial officer owned 3,545 shares of the company's stock, valued at approximately $171,258.95. This represents a 41.68% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO John R. Gallagher sold 4,000 shares of the company's stock in a transaction dated Thursday, May 29th. The shares were sold at an average price of $47.90, for a total transaction of $191,600.00. Following the sale, the chief operating officer directly owned 26,966 shares of the company's stock, valued at approximately $1,291,671.40. This represents a 12.92% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 11,562 shares of company stock valued at $544,870. Corporate insiders own 5.42% of the company's stock.

Institutional Trading of Trupanion

Several hedge funds have recently made changes to their positions in TRUP. Balyasny Asset Management L.P. grew its stake in shares of Trupanion by 368.2% in the 4th quarter. Balyasny Asset Management L.P. now owns 841,254 shares of the financial services provider's stock valued at $40,548,000 after buying an additional 661,559 shares during the period. Wellington Management Group LLP boosted its position in shares of Trupanion by 13.2% during the 1st quarter. Wellington Management Group LLP now owns 2,491,227 shares of the financial services provider's stock worth $92,848,000 after purchasing an additional 290,788 shares during the period. Jacobs Levy Equity Management Inc. boosted its position in shares of Trupanion by 2,029.0% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 303,550 shares of the financial services provider's stock worth $11,313,000 after purchasing an additional 289,292 shares during the period. BNP Paribas Financial Markets boosted its position in shares of Trupanion by 170.7% during the 4th quarter. BNP Paribas Financial Markets now owns 337,093 shares of the financial services provider's stock worth $16,248,000 after purchasing an additional 212,545 shares during the period. Finally, Hosking Partners LLP boosted its position in shares of Trupanion by 86.9% during the 1st quarter. Hosking Partners LLP now owns 397,656 shares of the financial services provider's stock worth $14,821,000 after purchasing an additional 184,936 shares during the period.

Trupanion Price Performance

The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.70 and a current ratio of 1.70. The stock has a market cap of $2.09 billion, a PE ratio of 187.74 and a beta of 1.78. The stock's 50-day moving average is $51.11 and its two-hundred day moving average is $44.01.

Trupanion Company Profile

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.