Trupanion (NASDAQ:TRUP) Trading Up 6.8% - Should You Buy?

Key Points

• Shares rose 6.8% to about $26 on Monday, but volume was thin (~58,123 shares, down ~87% from average), which may limit conviction behind the move.
• Trupanion beat April-quarter estimates with $0.11 EPS vs $0.07 and $384.1M revenue (up 12.3% YoY), though profitability remains modest (net margin 1.74%, P/E ~44.7).
• Analysts have trimmed price targets and the MarketBeat consensus is a "Hold" with a $42.25 target; meanwhile insiders have been net sellers even as several institutional investors modestly increased stakes.

Trupanion, Inc. (NASDAQ:TRUP - Get Free Report) shares were up 6.8% on Monday . The stock traded as high as $25.90 and last traded at $25.9940. Approximately 58,123 shares traded hands during mid-day trading, a decline of 87% from the average daily volume of 439,004 shares. The stock had previously closed at $24.33.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on TRUP shares. Piper Sandler lowered their price target on shares of Trupanion from $60.00 to $45.00 and set an "overweight" rating for the company in a research report on Friday, February 13th. Zacks Research cut shares of Trupanion from a "strong-buy" rating to a "hold" rating in a research report on Friday, February 13th. Cantor Fitzgerald reduced their price objective on shares of Trupanion from $42.00 to $34.00 and set a "neutral" rating for the company in a research note on Thursday, April 9th. Stifel Nicolaus reduced their price objective on shares of 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 shares of Trupanion from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, March 4th. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $42.25.

Trupanion Stock Performance

The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.73 and a current ratio of 1.73. The stock has a market cap of $1.15 billion, a P/E ratio of 44.68 and a beta of 1.50. The firm's 50 day moving average is $26.31 and its 200 day moving average is $32.83.

Trupanion (NASDAQ:TRUP - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The financial services provider reported $0.11 EPS for the quarter, topping the consensus estimate of $0.07 by $0.04. The firm had revenue of $384.05 million during the quarter, compared to analyst estimates of $379.77 million. Trupanion had a net margin of 1.74% and a return on equity of 6.87%. Trupanion's revenue was up 12.3% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.03) EPS. Analysts anticipate that Trupanion, Inc. will post 0.5 EPS for the current year.

Insider Buying and Selling at Trupanion

In other Trupanion news, COO John R. Gallagher sold 5,283 shares of the firm's stock in a transaction on Friday, February 27th. The shares were sold at an average price of $26.52, for a total value of $140,105.16. Following the completion of the transaction, the chief operating officer owned 32,387 shares of the company's stock, valued at approximately $858,903.24. This trade represents a 14.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CRO Emily Dreyer sold 7,792 shares of the firm's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $28.15, for a total transaction 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 position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 21,503 shares of company stock worth $578,537. 5.42% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Polar Capital Holdings Plc raised its holdings 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 during the last quarter. State Street Corp raised its holdings 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 during the last quarter. Marshall Wace LLP raised its holdings 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 during the last quarter. Greenlea Lane Capital Management LLC raised its holdings 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 during the last quarter. Finally, Millennium Management LLC raised its holdings 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 during the last quarter.

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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