Zacks Investment Research Downgrades Trupanion (NASDAQ:TRUP) to Strong Sell

Zacks Investment Research cut shares of Trupanion (NASDAQ:TRUP) from a hold rating to a strong sell rating in a report released on Saturday morning, Zacks.com reports.

According to Zacks, “Trupanion, Inc. operates as a direct-to-consumer monthly subscription service provider of a medical insurance plan for cats and dogs. It operates primarily in Canada, Puerto Rico, and the United States. The Company serves pet owners and veterinarians. Trupanion, Inc. is headquartered in Seattle, Washington. “

TRUP has been the topic of several other reports. Canaccord Genuity upped their price objective on shares of Trupanion from $140.00 to $150.00 and gave the company a buy rating in a report on Thursday, February 11th. Evercore ISI assumed coverage on shares of Trupanion in a research note on Tuesday, April 13th. They issued an outperform rating and a $100.00 price target on the stock. Finally, Lake Street Capital upped their price target on shares of Trupanion from $85.00 to $150.00 and gave the company a buy rating in a research note on Thursday, February 11th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and four have given a buy rating to the stock. The stock currently has a consensus rating of Hold and an average price target of $86.57.

NASDAQ:TRUP opened at $76.69 on Friday. Trupanion has a one year low of $24.85 and a one year high of $126.53. The company has a market cap of $3.07 billion, a P/E ratio of -1,916.77 and a beta of 2.01. The firm’s fifty day moving average price is $79.43 and its two-hundred day moving average price is $96.66. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.56 and a quick ratio of 1.56.

Trupanion (NASDAQ:TRUP) last released its quarterly earnings data on Thursday, April 29th. The financial services provider reported ($0.31) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.08) by ($0.23). Trupanion had a negative net margin of 0.37% and a negative return on equity of 1.22%. As a group, equities research analysts expect that Trupanion will post -0.09 earnings per share for the current year.

In other news, CEO Darryl Rawlings sold 4,000 shares of the stock in a transaction dated Friday, February 12th. The shares were sold at an average price of $106.81, for a total value of $427,240.00. Following the completion of the transaction, the chief executive officer now owns 382,585 shares of the company’s stock, valued at $40,863,903.85. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Tricia Plouf sold 1,500 shares of the company’s stock in a transaction that occurred on Thursday, April 15th. The shares were sold at an average price of $77.86, for a total value of $116,790.00. Following the completion of the transaction, the chief financial officer now directly owns 30,536 shares of the company’s stock, valued at approximately $2,377,532.96. The disclosure for this sale can be found here. Insiders sold 146,102 shares of company stock valued at $14,333,525 in the last three months. Company insiders own 13.61% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. increased its stake in shares of Trupanion by 48.7% in the fourth quarter. BlackRock Inc. now owns 5,133,036 shares of the financial services provider’s stock valued at $614,476,000 after buying an additional 1,680,109 shares during the period. Baillie Gifford & Co. increased its stake in shares of Trupanion by 0.5% in the fourth quarter. Baillie Gifford & Co. now owns 1,439,223 shares of the financial services provider’s stock valued at $172,290,000 after buying an additional 6,677 shares during the period. Clearbridge Investments LLC increased its stake in shares of Trupanion by 0.4% in the fourth quarter. Clearbridge Investments LLC now owns 1,105,729 shares of the financial services provider’s stock valued at $132,367,000 after buying an additional 4,500 shares during the period. Morgan Stanley increased its stake in shares of Trupanion by 29.4% in the fourth quarter. Morgan Stanley now owns 494,665 shares of the financial services provider’s stock valued at $59,217,000 after buying an additional 112,286 shares during the period. Finally, Lord Abbett & CO. LLC increased its stake in shares of Trupanion by 164.8% in the fourth quarter. Lord Abbett & CO. LLC now owns 465,768 shares of the financial services provider’s stock valued at $55,757,000 after buying an additional 289,872 shares during the period. 89.43% of the stock is owned by institutional investors.

Trupanion Company Profile

Trupanion, Inc, together with its subsidiaries, provides medical insurance for cats and dogs on monthly subscription basis in the United States, Canada, Puerto Rico, and Australia. The company operates through Subscription Business and Other Business segments. It serves pet owners and veterinarians. The company was formerly known as Vetinsurance International, Inc changed its name to Trupanion, Inc in 2013.

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