Vital Farms (NASDAQ:VITL) Rating Increased to Hold at DA Davidson

Key Points

• DA Davidson upgraded Vital Farms to “hold,” joining a broader cautious analyst view. The stock now carries a consensus rating of “Hold” with an average price target of $24.08, though several firms recently cut their ratings and targets.
• The company’s latest quarter beat revenue expectations but missed on earnings. Vital Farms reported revenue of $187.16 million, above estimates, while EPS came in at -$0.03 versus expectations of $0.09.
• Insiders and institutions have been active buyers. Recent insider purchases totaled 38,700 shares over the last three months, and hedge fund ownership remains very high at 98.59% of the stock.

Vital Farms (NASDAQ:VITL - Get Free Report) was upgraded by research analysts at DA Davidson to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

A number of other research firms also recently issued reports on VITL. Craig Hallum downgraded shares of Vital Farms from a "buy" rating to a "hold" rating and set a $10.00 price objective on the stock. in a research note on Friday, May 8th. Stifel Nicolaus reaffirmed a "hold" rating and issued a $10.00 price objective (down from $34.00) on shares of Vital Farms in a report on Friday, May 8th. Telsey Advisory Group lowered shares of Vital Farms from an "outperform" rating to a "market perform" rating and set a $11.00 target price for the company. in a report on Friday, May 8th. Jefferies Financial Group set a $13.00 target price on Vital Farms in a research report on Tuesday, June 30th. Finally, William Blair reiterated a "market perform" rating on shares of Vital Farms in a research report on Friday, May 8th. Five analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $24.08.

Vital Farms Stock Performance

VITL stock traded up $0.41 during midday trading on Monday, reaching $13.25. 334,268 shares of the company's stock traded hands, compared to its average volume of 2,691,697. Vital Farms has a 52-week low of $7.95 and a 52-week high of $53.13. The stock's 50-day moving average is $10.60 and its 200 day moving average is $18.57. The stock has a market cap of $567.76 million, a P/E ratio of 12.75 and a beta of 1.07. The company has a current ratio of 1.77, a quick ratio of 1.00 and a debt-to-equity ratio of 0.01.

Vital Farms (NASDAQ:VITL - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.09 by ($0.12). The company had revenue of $187.16 million for the quarter, compared to analysts' expectations of $182.40 million. Vital Farms had a net margin of 6.10% and a return on equity of 14.47%. The company's quarterly revenue was up 15.4% compared to the same quarter last year. During the same period last year, the business earned $0.37 earnings per share. As a group, analysts anticipate that Vital Farms will post -0.45 EPS for the current year.

Insider Buying and Selling at Vital Farms

In other Vital Farms news, insider Joseph Michael Holland bought 12,484 shares of the company's stock in a transaction on Thursday, May 14th. The shares were bought at an average price of $8.00 per share, for a total transaction of $99,872.00. Following the transaction, the insider owned 38,150 shares of the company's stock, valued at approximately $305,200. This trade represents a 48.64% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Glenda J. Flanagan acquired 6,100 shares of the company's stock in a transaction that occurred on Monday, May 18th. The shares were acquired at an average cost of $8.33 per share, for a total transaction of $50,813.00. Following the acquisition, the director directly owned 37,498 shares of the company's stock, valued at $312,358.34. This trade represents a 19.43% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired a total of 38,700 shares of company stock worth $320,864 over the last three months. 3.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Vital Farms

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Van Berkom & Associates Inc. raised its holdings in shares of Vital Farms by 1,998.7% in the 1st quarter. Van Berkom & Associates Inc. now owns 2,261,533 shares of the company's stock worth $31,933,000 after purchasing an additional 2,153,775 shares during the period. Wasatch Advisors LP lifted its position in Vital Farms by 80.2% during the second quarter. Wasatch Advisors LP now owns 2,074,803 shares of the company's stock valued at $79,921,000 after buying an additional 923,507 shares in the last quarter. William Blair Investment Management LLC acquired a new stake in shares of Vital Farms in the fourth quarter worth $25,534,000. Balyasny Asset Management L.P. lifted its holdings in shares of Vital Farms by 466.5% during the 4th quarter. Balyasny Asset Management L.P. now owns 503,894 shares of the company's stock valued at $16,094,000 after acquiring an additional 641,394 shares in the last quarter. Finally, Principal Financial Group Inc. lifted its stake in shares of Vital Farms by 41.6% during the first quarter. Principal Financial Group Inc. now owns 2,153,008 shares of the company's stock worth $30,400,000 after purchasing an additional 632,537 shares in the last quarter. 98.59% of the stock is owned by hedge funds and other institutional investors.

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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