Vital Farms (NASDAQ:VITL) Hits New 52-Week Low Following Analyst Downgrade

Key Points

• Shares plunged to a new 52-week low—VITL traded as low as $12.68 after Needham cut its price target from $35 to $20 (while keeping a buy rating); several other firms have lowered targets even as the consensus remains a "Moderate Buy" with an average target of $42.82.
• Insider and operating update: a director bought 5,000 shares at $18.45 while insiders sold 65,000 shares in the last three months, and Vital Farms reported Q earnings of $0.35 EPS (missed by $0.03) on $213.55M revenue (up 28.6% YoY), with a market cap of about $577M and a P/E of 8.9.

Vital Farms, Inc. (NASDAQ:VITL - Get Free Report)'s share price hit a new 52-week low on Monday after Needham & Company LLC lowered their price target on the stock from $35.00 to $20.00. Needham & Company LLC currently has a buy rating on the stock. Vital Farms traded as low as $12.68 and last traded at $12.71, with a volume of 860226 shares changing hands. The stock had previously closed at $13.14.

Other research analysts also recently issued reports about the stock. TD Cowen reissued a "buy" rating on shares of Vital Farms in a research report on Tuesday, January 20th. DA Davidson set a $47.00 price objective on Vital Farms and gave the company a "buy" rating in a research report on Wednesday, December 17th. Morgan Stanley restated an "equal weight" rating and issued a $24.00 target price (down from $45.00) on shares of Vital Farms in a research report on Friday, February 27th. BMO Capital Markets decreased their price target on shares of Vital Farms from $60.00 to $50.00 and set an "outperform" rating on the stock in a research note on Thursday, December 18th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Vital Farms in a research report on Monday, December 29th. Nine analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $42.82.

Insider Transactions at Vital Farms

In other Vital Farms news, Director Karl Khoury bought 5,000 shares of the stock in a transaction dated Monday, March 9th. The stock was purchased at an average cost of $18.45 per share, for a total transaction of $92,250.00. Following the completion of the acquisition, the director owned 119,789 shares of the company's stock, valued at approximately $2,210,107.05. This trade represents a 4.36% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Matthew Ohayer sold 25,000 shares of the stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $30.85, for a total value of $771,250.00. Following the completion of the sale, the insider directly owned 6,361,190 shares in the company, valued at approximately $196,242,711.50. This represents a 0.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 65,000 shares of company stock valued at $1,736,050. 21.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Vital Farms

A number of institutional investors have recently modified their holdings of VITL. Royal Bank of Canada lifted its holdings in shares of Vital Farms by 89.2% during the 1st quarter. Royal Bank of Canada now owns 19,381 shares of the company's stock worth $591,000 after acquiring an additional 9,136 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Vital Farms by 5.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,057 shares of the company's stock valued at $611,000 after buying an additional 1,108 shares during the last quarter. Goldman Sachs Group Inc. grew its position in Vital Farms by 3.3% in the first quarter. Goldman Sachs Group Inc. now owns 415,420 shares of the company's stock valued at $12,658,000 after acquiring an additional 13,397 shares during the period. Woodline Partners LP acquired a new position in Vital Farms during the first quarter worth $1,073,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Vital Farms by 1.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 89,893 shares of the company's stock valued at $2,739,000 after acquiring an additional 1,198 shares during the period. 98.59% of the stock is currently owned by hedge funds and other institutional investors.

Vital Farms Trading Down 2.0%

The firm has a market cap of $576.81 million, a P/E ratio of 8.90 and a beta of 1.14. The company has a current ratio of 2.16, a quick ratio of 1.61 and a debt-to-equity ratio of 0.01. The company's fifty day moving average price is $22.83 and its two-hundred day moving average price is $31.29.

Vital Farms (NASDAQ:VITL - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported $0.35 earnings per share for the quarter, missing analysts' consensus estimates of $0.38 by ($0.03). Vital Farms had a net margin of 8.73% and a return on equity of 20.69%. The business had revenue of $213.55 million during the quarter, compared to analyst estimates of $212.83 million. During the same quarter last year, the business posted $0.23 earnings per share. The business's quarterly revenue was up 28.6% compared to the same quarter last year. As a group, sell-side analysts predict that Vital Farms, Inc. will post 1.11 EPS for the current fiscal year.

About Vital Farms

Vital Farms, traded on the NASDAQ under the symbol VITL, is a U.S.-based food company specializing in pasture-raised egg and dairy products. The company partners with a network of family farms across the United States to produce eggs, butter and related items under a certified humane, pasture-centric farming model. Vital Farms' supply chain emphasizes animal welfare, environmental stewardship and transparent sourcing, appealing to consumers seeking ethically produced, high-quality ingredients.

Founded in 2007 and headquartered in Austin, Texas, Vital Farms began by marketing pasture-raised eggs to health- and ethically minded shoppers.

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