Vital Farms (NASDAQ:VITL) Trading Up 13.2% Following Earnings Beat

Key Points

• Vital Farms' stock price surged 13.2% to $42.24 after the company reported an earnings per share (EPS) of $0.36, exceeding analyst expectations by $0.09.
• Institutional investors have significantly increased their holdings in Vital Farms, with Wellington Management Group growing its stake by 417.8% in the last quarter.
• Wall Street analysts maintain a positive outlook on Vital Farms, with an average target price of $44.00 and most ratings being "Buy" or "Outperform."

Vital Farms, Inc. (NASDAQ:VITL - Get Free Report)'s stock price shot up 13.2% during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $42.73 and last traded at $42.24. 1,039,634 shares changed hands during trading, an increase of 8% from the average session volume of 966,348 shares. The stock had previously closed at $37.30.

The company reported $0.36 EPS for the quarter, topping the consensus estimate of $0.27 by $0.09. Vital Farms had a net margin of 8.26% and a return on equity of 19.53%. The business's quarterly revenue was up 25.4% compared to the same quarter last year. During the same period in the previous year, the company posted $0.36 EPS.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on VITL shares. Morgan Stanley lowered their target price on shares of Vital Farms from $40.00 to $39.00 and set an "overweight" rating for the company in a report on Thursday, April 17th. Telsey Advisory Group reiterated an "outperform" rating and set a $46.00 price target on shares of Vital Farms in a report on Friday, August 1st. BMO Capital Markets upgraded Vital Farms to a "strong-buy" rating in a research note on Tuesday, May 6th. Finally, Mizuho started coverage on Vital Farms in a research note on Tuesday, July 8th. They issued an "outperform" rating and a $45.00 target price on the stock. Nine analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, Vital Farms has an average rating of "Buy" and an average target price of $44.00.

Insider Buying and Selling at Vital Farms

In other news, insider Matthew Ohayer sold 30,000 shares of the firm's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $39.17, for a total value of $1,175,100.00. Following the transaction, the insider owned 6,858,890 shares of the company's stock, valued at approximately $268,662,721.30. This trade represents a 0.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Thilo Wrede sold 1,200 shares of the business's stock in a transaction dated Friday, July 11th. The stock was sold at an average price of $38.97, for a total value of $46,764.00. Following the transaction, the chief financial officer directly owned 56,187 shares of the company's stock, valued at approximately $2,189,607.39. The trade was a 2.09% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 67,400 shares of company stock valued at $2,413,630. 21.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Vital Farms

Institutional investors and hedge funds have recently modified their holdings of the business. Wellington Management Group LLP grew its holdings in shares of Vital Farms by 417.8% in the fourth quarter. Wellington Management Group LLP now owns 2,431,024 shares of the company's stock worth $91,625,000 after purchasing an additional 1,961,550 shares during the last quarter. American Century Companies Inc. grew its stake in Vital Farms by 1,453.0% during the 1st quarter. American Century Companies Inc. now owns 1,243,467 shares of the company's stock worth $37,888,000 after buying an additional 1,163,399 shares during the last quarter. Nuveen LLC acquired a new stake in shares of Vital Farms in the 1st quarter valued at approximately $17,633,000. Lord Abbett & CO. LLC raised its holdings in Vital Farms by 64.6% during the fourth quarter. Lord Abbett & CO. LLC now owns 1,058,753 shares of the company's stock worth $39,904,000 after purchasing an additional 415,614 shares during the last quarter. Finally, Raymond James Financial Inc. purchased a new stake in shares of Vital Farms in the first quarter valued at $12,207,000. 98.59% of the stock is currently owned by institutional investors.

Vital Farms Trading Up 13.4%

The business has a 50 day simple moving average of $35.95 and a 200-day simple moving average of $34.96. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.91 and a current ratio of 3.35. The stock has a market capitalization of $1.89 billion, a P/E ratio of 37.66 and a beta of 0.94.

About Vital Farms

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.

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