UFP Technologies (NASDAQ:UFPT) Trading Up 12.5% Following Strong Earnings

Key Points

• UFP Technologies' stock price surged by 12.5% after the company reported earnings of $2.50 per share, surpassing analysts' expectations of $2.25 per share.
• The company's revenue for the quarter was $151.18 million, indicating a 37.2% year-over-year increase, despite falling short of the $151.55 million analysts had predicted.
• Hedge funds have shown significant interest in UFP Technologies, with 87.28% of shares owned by institutional investors, including notable increases in stakes by several firms during the first quarter.

UFP Technologies, Inc. (NASDAQ:UFPT - Get Free Report)'s stock price was up 12.5% on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $246.21 and last traded at $254.50. Approximately 14,138 shares were traded during trading, a decline of 90% from the average daily volume of 135,225 shares. The stock had previously closed at $226.27.

The industrial products company reported $2.50 earnings per share for the quarter, beating the consensus estimate of $2.25 by $0.25. UFP Technologies had a return on equity of 21.54% and a net margin of 11.40%. The firm had revenue of $151.18 million for the quarter, compared to analyst estimates of $151.55 million. During the same quarter in the prior year, the firm posted $1.86 earnings per share. The company's quarterly revenue was up 37.2% on a year-over-year basis.

Wall Street Analyst Weigh In

Separately, Lake Street Capital raised their price target on UFP Technologies from $252.00 to $289.00 and gave the company a "buy" rating in a research note on Wednesday.

Institutional Investors Weigh In On UFP Technologies

A number of institutional investors have recently made changes to their positions in UFPT. Nisa Investment Advisors LLC grew its holdings in shares of UFP Technologies by 290.3% in the second quarter. Nisa Investment Advisors LLC now owns 121 shares of the industrial products company's stock valued at $30,000 after acquiring an additional 90 shares in the last quarter. Johnson Financial Group Inc. bought a new position in shares of UFP Technologies in the fourth quarter valued at approximately $42,000. PNC Financial Services Group Inc. grew its holdings in shares of UFP Technologies by 179.0% in the second quarter. PNC Financial Services Group Inc. now owns 173 shares of the industrial products company's stock valued at $42,000 after acquiring an additional 111 shares in the last quarter. GAMMA Investing LLC grew its holdings in shares of UFP Technologies by 37.6% in the second quarter. GAMMA Investing LLC now owns 183 shares of the industrial products company's stock valued at $45,000 after acquiring an additional 50 shares in the last quarter. Finally, State of Wyoming grew its holdings in shares of UFP Technologies by 34.7% in the first quarter. State of Wyoming now owns 365 shares of the industrial products company's stock valued at $74,000 after acquiring an additional 94 shares in the last quarter. Institutional investors own 87.28% of the company's stock.

UFP Technologies Trading Down 0.3%

The company has a market capitalization of $1.58 billion, a P/E ratio of 23.82 and a beta of 1.14. The company has a debt-to-equity ratio of 0.39, a current ratio of 2.77 and a quick ratio of 1.45. The firm has a fifty day moving average price of $237.27 and a 200-day moving average price of $232.06.

About UFP Technologies

UFP Technologies, Inc designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners.