Freshpet (NASDAQ:FRPT) Shares Up 11% After Better-Than-Expected Earnings

Freshpet, Inc. (NASDAQ:FRPT) shares rose 11% during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $69.70 and last traded at $69.27. Approximately 932,722 shares changed hands during mid-day trading, a decline of 37% from the average session volume of 1,484,178 shares. The stock had previously closed at $62.38.

The company reported $0.39 earnings per share for the quarter, beating analysts’ consensus estimates of $0.22 by $0.17. Freshpet had a net margin of 17.63% and a return on equity of 6.22%. The company had revenue of $305.59 million for the quarter, compared to analyst estimates of $292.33 million. During the same period last year, the firm earned $0.33 earnings per share. The firm’s revenue was up 15.4% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on FRPT. Piper Sandler reiterated an “overweight” rating on shares of Freshpet in a report on Monday, June 15th. Wells Fargo & Company reduced their price objective on Freshpet from $75.00 to $70.00 and set an “overweight” rating for the company in a research note on Wednesday, July 8th. TD Cowen raised Freshpet from a “hold” rating to a “buy” rating and set a $80.00 target price for the company in a research report on Wednesday, April 8th. Stifel Nicolaus set a $66.00 target price on Freshpet in a research note on Thursday, May 7th. Finally, Jefferies Financial Group cut their price target on shares of Freshpet from $75.00 to $70.00 and set a “hold” rating on the stock in a report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $74.50.

Insiders Place Their Bets

In other news, CEO William B. Cyr sold 42,495 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $51.03, for a total transaction of $2,168,519.85. Following the completion of the transaction, the chief executive officer owned 224,459 shares in the company, valued at approximately $11,454,142.77. This represents a 15.92% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Craig D. Steeneck acquired 2,000 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was purchased at an average price of $47.83 per share, for a total transaction of $95,660.00. Following the completion of the purchase, the director directly owned 37,500 shares in the company, valued at $1,793,625. This trade represents a 5.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders acquired 4,211 shares of company stock valued at $215,027 and sold 235,262 shares valued at $11,664,591. Company insiders own 4.30% of the company’s stock.

Hedge Funds Weigh In On Freshpet

Large investors have recently modified their holdings of the business. Handelsbanken Fonder AB raised its position in shares of Freshpet by 13.8% in the second quarter. Handelsbanken Fonder AB now owns 17,300 shares of the company’s stock valued at $1,023,000 after purchasing an additional 2,100 shares during the period. Fulton Bank N.A. grew its stake in Freshpet by 30.2% in the 2nd quarter. Fulton Bank N.A. now owns 8,909 shares of the company’s stock valued at $527,000 after buying an additional 2,068 shares in the last quarter. Sarasin & Partners LLP grew its stake in Freshpet by 6.1% in the 2nd quarter. Sarasin & Partners LLP now owns 28,500 shares of the company’s stock valued at $1,685,000 after buying an additional 1,650 shares in the last quarter. Versant Capital Management Inc raised its holdings in Freshpet by 254.8% during the 2nd quarter. Versant Capital Management Inc now owns 1,689 shares of the company’s stock valued at $100,000 after acquiring an additional 1,213 shares during the period. Finally, Militia Capital Management LLC bought a new stake in Freshpet during the 1st quarter valued at $542,000.

Freshpet Price Performance

The firm has a market cap of $3.40 billion, a P/E ratio of 18.52 and a beta of 1.61. The business’s fifty day simple moving average is $55.23 and its 200-day simple moving average is $62.50. The company has a current ratio of 6.18, a quick ratio of 5.26 and a debt-to-equity ratio of 0.34.

Freshpet Company Profile

Freshpet Inc (NASDAQ: FRPT) is a leading pet food company specializing in fresh, refrigerated meals and treats for dogs and cats. The company’s products are formulated with carefully selected, natural ingredients and are designed to offer a higher level of nutrition and freshness than traditional dry or canned pet foods. Freshpet’s offerings include refrigerated rolls, pâtés and snacks, all of which are sold through the refrigerated section of grocery, mass-market and pet specialty stores.

Freshpet’s product portfolio is built around the concept of fresh, minimally processed recipes that do not require preservatives or artificial colors.