Vital Farms (NASDAQ:VITL) Trading Down 5.8% - What's Next?

Key Points

• Vital Farms shares fell 5.8% to about $12.05, with trading volume down 89% versus the average session. The stock’s consensus analyst rating is “Hold,” with a reported average price target of $24.08.
• The company’s latest quarterly results were mixed: revenue rose 15.4% year over year to $187.16 million and exceeded estimates, but adjusted earnings of negative $0.03 per share missed expectations by $0.12.
• Insiders have been buying shares, including purchases by an insider and a director totaling roughly $100,000. Institutional investors and hedge funds own approximately 98.59% of the company.

Vital Farms, Inc. (NASDAQ:VITL - Get Free Report)'s stock price fell 5.8% during trading on Tuesday . The company traded as low as $12.04 and last traded at $12.0510. Approximately 286,889 shares were traded during trading, a decline of 89% from the average session volume of 2,522,901 shares. The stock had previously closed at $12.79.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on VITL shares. Wall Street Zen lowered shares of Vital Farms from a "hold" rating to a "strong sell" rating in a report on Saturday, May 9th. Telsey Advisory Group cut Vital Farms from an "outperform" rating to a "market perform" rating and set a $11.00 price objective for the company. in a report on Friday, May 8th. William Blair restated a "market perform" rating on shares of Vital Farms in a research report on Friday, May 8th. Craig Hallum lowered shares of Vital Farms from a "buy" rating to a "hold" rating and set a $10.00 target price on the stock. in a report on Friday, May 8th. Finally, Needham & Company LLC cut their price objective on Vital Farms from $20.00 to $13.00 and set a "buy" rating on the stock in a report on Monday, May 11th. Five research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $24.08.

Vital Farms Stock Down 4.8%

The firm has a 50 day simple moving average of $11.71 and a 200-day simple moving average of $15.97. The stock has a market cap of $521.70 million, a P/E ratio of 11.67 and a beta of 1.07. The company has a quick ratio of 1.00, a current ratio of 1.77 and a debt-to-equity ratio of 0.01.

Vital Farms (NASDAQ:VITL - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.03) EPS for the quarter, missing the consensus estimate of $0.09 by ($0.12). Vital Farms had a net margin of 6.10% and a return on equity of 14.47%. The company had revenue of $187.16 million during the quarter, compared to analyst estimates of $182.40 million. During the same quarter in the prior year, the firm earned $0.37 earnings per share. Vital Farms's revenue for the quarter was up 15.4% on a year-over-year basis. On average, equities research analysts forecast that Vital Farms, Inc. will post -0.46 earnings per share for the current fiscal year.

Insider Buying and Selling at Vital Farms

In other Vital Farms news, insider Stephanie Coon purchased 5,895 shares of the company's stock in a transaction dated Friday, May 15th. The stock was bought at an average cost of $8.42 per share, for a total transaction of $49,635.90. Following the completion of the transaction, the insider owned 62,314 shares in the company, valued at approximately $524,683.88. This represents a 10.45% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, Director Glenda J. Flanagan purchased 6,100 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was bought at an average price of $8.33 per share, with a total value of $50,813.00. Following the completion of the purchase, the director owned 37,498 shares of the company's stock, valued at $312,358.34. This trade represents a 19.43% increase in their position. The SEC filing for this purchase provides additional information. Insiders have purchased a total of 38,700 shares of company stock valued at $320,864 in the last three months. Corporate insiders own 3.90% of the company's stock.

Institutional Trading of Vital Farms

Several large investors have recently modified their holdings of the stock. Royal Bank of Canada grew its position in 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 last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Vital Farms by 5.8% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,057 shares of the company's stock worth $611,000 after purchasing an additional 1,108 shares during the period. Goldman Sachs Group Inc. raised its holdings in Vital Farms by 3.3% during the first quarter. Goldman Sachs Group Inc. now owns 415,420 shares of the company's stock worth $12,658,000 after buying an additional 13,397 shares during the last quarter. Woodline Partners LP bought a new position in Vital Farms in the 1st quarter valued at about $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% in 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 purchasing an additional 1,198 shares in the last quarter. 98.59% of the stock is owned by institutional investors and hedge funds.

Vital Farms Company Profile

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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