Vital Farms (NASDAQ:VITL) Hits New 1-Year High on Better-Than-Expected Earnings

Key Points

• Vital Farms (NASDAQ:VITL) reached a new 52-week high of $45.75 after reporting better-than-expected earnings, with an EPS of $0.36 compared to the analysts' estimate of $0.27.
• The company's revenue for the quarter was $184.77 million, significantly exceeding expectations of $170.28 million and reflecting a year-over-year increase of 25.4%.
• Despite the positive performance, Morgan Stanley reduced their price target for Vital Farms from $40.00 to $39.00, although other firms maintained or raised their ratings and targets for the stock.

Vital Farms, Inc. (NASDAQ:VITL - Get Free Report) shares reached a new 52-week high during mid-day trading on Friday following a better than expected earnings announcement. The company traded as high as $45.72 and last traded at $45.75, with a volume of 223254 shares. The stock had previously closed at $43.86.

The company reported $0.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.09. Vital Farms had a return on equity of 19.06% and a net margin of 7.84%. The business had revenue of $184.77 million for the quarter, compared to analyst estimates of $170.28 million. During the same quarter in the prior year, the company posted $0.36 earnings per share. Vital Farms's revenue was up 25.4% on a year-over-year basis.

Analyst Ratings Changes

Several research firms have issued reports on VITL. Morgan Stanley dropped their price objective on Vital Farms from $40.00 to $39.00 and set an "overweight" rating on the stock in a research note on Thursday, April 17th. Stifel Nicolaus upped their price objective on Vital Farms from $44.00 to $48.00 and gave the company a "buy" rating in a research note on Friday. Mizuho began coverage on Vital Farms in a research note on Tuesday, July 8th. They issued an "outperform" rating and a $45.00 price objective on the stock. BMO Capital Markets restated an "outperform" rating on shares of Vital Farms in a research note on Friday. Finally, Telsey Advisory Group upped their price objective on Vital Farms from $46.00 to $50.00 and gave the company an "outperform" rating in a research note on Friday. Ten investment analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $44.89.

Insider Activity at Vital Farms

In related news, insider Matthew Ohayer sold 30,000 shares of the stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $39.17, for a total transaction of $1,175,100.00. Following the sale, the insider owned 6,858,890 shares of the company's stock, valued at $268,662,721.30. This represents a 0.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Thilo Wrede sold 1,200 shares of the stock in a transaction that occurred on Friday, July 11th. The stock was sold at an average price of $38.97, for a total value of $46,764.00. Following the sale, the chief financial officer directly owned 56,187 shares in the company, valued at $2,189,607.39. This represents a 2.09% decrease in their position. The disclosure for this sale can be found here. Insiders sold 67,400 shares of company stock worth $2,413,630 in the last ninety days. 21.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Vital Farms

A number of large investors have recently added to or reduced their stakes in VITL. Wellington Management Group LLP grew its position in Vital Farms by 417.8% during the fourth quarter. Wellington Management Group LLP now owns 2,431,024 shares of the company's stock worth $91,625,000 after buying an additional 1,961,550 shares in the last quarter. American Century Companies Inc. boosted its holdings in shares of Vital Farms by 1,453.0% in the 1st quarter. American Century Companies Inc. now owns 1,243,467 shares of the company's stock valued at $37,888,000 after purchasing an additional 1,163,399 shares in the last quarter. Nuveen LLC acquired a new stake in shares of Vital Farms in the 1st quarter valued at $17,633,000. Lord Abbett & CO. LLC boosted its holdings in shares of Vital Farms by 64.6% in the 4th quarter. Lord Abbett & CO. LLC now owns 1,058,753 shares of the company's stock valued at $39,904,000 after purchasing an additional 415,614 shares in the last quarter. Finally, Raymond James Financial Inc. acquired a new stake in shares of Vital Farms in the 1st quarter valued at $12,207,000. Institutional investors and hedge funds own 98.59% of the company's stock.

Vital Farms Stock Performance

The stock has a fifty day simple moving average of $36.45 and a two-hundred day simple moving average of $34.90. The stock has a market cap of $2.03 billion, a price-to-earnings ratio of 40.61 and a beta of 0.94. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.91 and a current ratio of 3.35.

Vital Farms Company Profile

Vital Farms, Inc, a food company, provides pasture-raised products in the United States. It offers shell eggs, butter, hard-boiled eggs, and liquid whole eggs. The company was founded in 2007 and is headquartered in Austin, Texas.