Medifast (NYSE:MED) Rating Lowered to “Hold” at Zacks Research

Medifast (NYSE:MED) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Wednesday, Zacks reports.

Separately, Weiss Ratings downgraded Medifast from a “sell (d)” rating to a “sell (d-)” rating in a research report on Wednesday, October 28th. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Medifast currently has an average rating of “Reduce” and an average price target of $12.00.

Medifast Stock Down 1.9%

Medifast stock opened at $12.89 on Wednesday. The company’s 50-day moving average price is $12.14 and its 200-day moving average price is $11.38. Medifast has a twelve month low of $9.22 and a twelve month high of $13.63. The company has a market cap of $144.07 million, a PE ratio of -3.49 and a beta of 0.65.

Medifast (NYSE:MED) last announced its earnings results on Monday, October 26th. The specialty retailer reported ($0.19) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.35) by $0.16. Medifast had a negative net margin of 13.64% and a negative return on equity of 6.90%. The firm had revenue of $72.05 million for the quarter, compared to analysts’ expectations of $71.30 million. As a group, sell-side analysts expect that Medifast will post -0.57 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Parsa Kiai acquired 5,557 shares of the company’s stock in a transaction on Wednesday, October 28th. The stock was bought at an average cost of $12.24 per share, with a total value of $68,017.68. Following the completion of the purchase, the director directly owned 712,891 shares of the company’s stock, valued at $8,725,785.84. This represents a 0.79% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Daniel Chard sold 9,544 shares of Medifast stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $11.73, for a total transaction of $111,951.12. Following the transaction, the director directly owned 130,609 shares of the company’s stock, valued at $1,532,043.57. The trade was a 6.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders purchased 126,184 shares of company stock valued at $1,500,207. 3.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Medifast

Large investors have recently made changes to their positions in the company. BlackRock Inc. bought a new position in Medifast during the 2nd quarter valued at about $3,920,000. Bank of America Corp DE bought a new stake in Medifast in the second quarter worth about $924,000. Empowered Funds LLC purchased a new position in shares of Medifast during the second quarter valued at approximately $701,000. Great Lakes Advisors LLC purchased a new position in shares of Medifast during the second quarter valued at approximately $548,000. Finally, Quantinno Capital Management LP boosted its position in shares of Medifast by 15.1% during the first quarter. Quantinno Capital Management LP now owns 56,153 shares of the specialty retailer’s stock valued at $572,000 after buying an additional 7,346 shares during the period. 95.51% of the stock is owned by hedge funds and other institutional investors.

About Medifast

Medifast, Inc. is a health and wellness company focused on weight management and healthy living. Its products and programs are marketed primarily under the OPTAVIA brand. OPTAVIA offers structured plans that combine portion-controlled meal replacements and other nutrition products with guidance from independent coaches. The company’s approach emphasizes nutrition, behavior changes and ongoing support. Founded in 1980, Medifast serves customers primarily in the United States. Its business centers on selling products and connecting customers with coaches who provide support as they follow the company’s programs.