Trupanion (NASDAQ:TRUP) Shares Gap Up Following Better-Than-Expected Earnings

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 share price gapped up before the market opened 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 the consensus estimate of ($0.03) by $0.25. Trupanion had a net margin of 0.81% and a return on equity of 3.31%. The firm had revenue of $353.56 million for the quarter, compared to analysts' expectations of $346.73 million. During the same quarter in the prior year, the business earned ($0.14) EPS. The business's quarterly revenue was up 12.3% on a year-over-year basis.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Piper Sandler set a $67.00 price objective on shares of Trupanion and gave the stock an "overweight" rating in a research note on Friday. Stifel Nicolaus raised their target price on shares of Trupanion from $41.00 to $45.00 and gave the stock a "hold" rating in a research note on Friday. Finally, Lake Street Capital decreased their target price on shares of Trupanion from $65.00 to $60.00 and set a "buy" rating on the stock in a research note on Friday, May 2nd. Two analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, Trupanion has an average rating of "Moderate Buy" and an average target price of $55.60.

Insider Buying and Selling at Trupanion

In other Trupanion news, COO John R. Gallagher sold 4,000 shares of the stock in a transaction that occurred on Thursday, May 29th. The shares were sold at an average price of $47.90, for a total transaction of $191,600.00. Following the completion of the sale, the chief operating officer directly owned 26,966 shares of the company's stock, valued at $1,291,671.40. This trade represents a 12.92% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Fawwad Qureshi sold 2,534 shares of the stock in a transaction that occurred on Thursday, May 29th. The shares were sold at an average price of $48.31, for a total transaction of $122,417.54. Following the sale, the chief financial officer directly owned 3,545 shares of the company's stock, valued at approximately $171,258.95. This trade represents a 41.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 11,562 shares of company stock valued at $544,870 in the last three months. 5.42% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Trupanion

A number of institutional investors have recently added to or reduced their stakes in the stock. Quarry LP purchased a new position in shares of Trupanion in the fourth quarter valued at $39,000. AlphaQuest LLC grew its holdings in shares of Trupanion by 940.6% in the first quarter. AlphaQuest LLC now owns 1,051 shares of the financial services provider's stock valued at $39,000 after purchasing an additional 950 shares in the last quarter. Nisa Investment Advisors LLC grew its holdings in shares of Trupanion by 44.1% in the second quarter. Nisa Investment Advisors LLC now owns 980 shares of the financial services provider's stock valued at $54,000 after purchasing an additional 300 shares in the last quarter. Coppell Advisory Solutions LLC boosted its stake in Trupanion by 58.3% during the fourth quarter. Coppell Advisory Solutions LLC now owns 1,249 shares of the financial services provider's stock worth $61,000 after buying an additional 460 shares during the period. Finally, PNC Financial Services Group Inc. boosted its stake in Trupanion by 11.8% during the first quarter. PNC Financial Services Group Inc. now owns 2,234 shares of the financial services provider's stock worth $83,000 after buying an additional 235 shares during the period.

Trupanion Price Performance

The company has a quick ratio of 1.69, a current ratio of 1.69 and a debt-to-equity ratio of 0.32. The firm's 50 day simple moving average is $51.16 and its 200 day simple moving average is $43.98. The company has a market capitalization of $2.18 billion, a PE ratio of 195.22 and a beta of 1.78.

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.