Trupanion (NASDAQ:TRUP) Stock Price Down 7.8% - Here's What Happened

Key Points

• Trupanion shares fell 7.8% intraday to $25.13, with 243,229 shares traded (about 44% below average), reflecting a near-term pullback from the prior close of $27.25.
• Analysts have been cutting targets—Bank of America, Cantor Fitzgerald, Piper Sandler and others trimmed price targets—and the consensus rating is **Hold** with an average target of $45.80.
• The company slightly missed quarterly EPS estimates ($0.13 vs. $0.14) while revenue rose 11.7% year-over-year to $376.85M; Trupanion has a market cap of ~$1.08B and insiders have sold roughly 21,502 shares (~$580k) in the past 90 days.

Trupanion, Inc. (NASDAQ:TRUP - Get Free Report)'s share price traded down 7.8% during mid-day trading on Tuesday . The stock traded as low as $24.98 and last traded at $25.13. 243,229 shares changed hands during trading, a decline of 44% from the average session volume of 432,689 shares. The stock had previously closed at $27.25.

Wall Street Analysts Forecast Growth

TRUP has been the topic of a number of research analyst reports. Bank of America decreased their price target on shares of Trupanion from $63.00 to $59.00 and set a "buy" rating on the stock in a report on Tuesday, April 14th. Cantor Fitzgerald cut their target price on shares of Trupanion from $42.00 to $34.00 and set a "neutral" rating for the company in a research report on Thursday, April 9th. Piper Sandler lowered their price target on Trupanion from $60.00 to $45.00 and set an "overweight" rating on the stock in a research report on Friday, February 13th. Stifel Nicolaus dropped their price target on Trupanion from $35.00 to $31.00 and set a "hold" rating for the company in a research note on Tuesday, March 31st. Finally, Weiss Ratings lowered Trupanion from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, March 4th. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $45.80.

Trupanion Stock Down 8.4%

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.69 and a current ratio of 1.69. The stock's 50 day moving average price is $26.57 and its 200-day moving average price is $33.18. The company has a market cap of $1.08 billion, a PE ratio of 55.47 and a beta of 1.66.

Trupanion (NASDAQ:TRUP - Get Free Report) last posted its quarterly earnings results on Thursday, February 12th. The financial services provider reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.14 by ($0.01). The business had revenue of $376.85 million during the quarter, compared to the consensus estimate of $375.89 million. Trupanion had a return on equity of 5.39% and a net margin of 1.35%.The business's revenue for the quarter was up 11.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.04 earnings per share. On average, analysts predict that Trupanion, Inc. will post 0.5 earnings per share for the current year.

Insider Buying and Selling

In other news, COO John R. Gallagher sold 5,283 shares of the stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $26.52, for a total transaction of $140,105.16. Following the completion of the sale, the chief operating officer owned 32,387 shares of the company's stock, valued at approximately $858,903.24. This represents a 14.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Fawwad Qureshi sold 4,645 shares of the firm's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $25.61, for a total transaction of $118,958.45. The SEC filing for this sale provides additional information. Insiders have sold a total of 21,502 shares of company stock worth $580,315 in the last ninety days. 5.42% of the stock is owned by insiders.

Institutional Investors Weigh In On Trupanion

Several institutional investors have recently added to or reduced their stakes in the company. Inspire Investing LLC increased its position in shares of Trupanion by 58.7% in the first quarter. Inspire Investing LLC now owns 20,034 shares of the financial services provider's stock valued at $513,000 after acquiring an additional 7,410 shares during the period. Louisiana State Employees Retirement System purchased a new stake in shares of Trupanion during the first quarter worth about $384,000. OP Asset Management Ltd bought a new stake in shares of Trupanion in the first quarter worth about $352,000. EP Wealth Advisors LLC bought a new stake in shares of Trupanion in the fourth quarter worth about $380,000. Finally, Susquehanna Fundamental Investments LLC increased its holdings in Trupanion by 216.7% during the 4th quarter. Susquehanna Fundamental Investments LLC now owns 66,368 shares of the financial services provider's stock valued at $2,480,000 after purchasing an additional 45,412 shares during the period.

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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