Zacks Research Downgrades Freshpet (NASDAQ:FRPT) to Strong Sell

Freshpet (NASDAQ:FRPT) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “strong sell” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other equities analysts have also recently weighed in on the stock. UBS Group decreased their price target on shares of Freshpet from $65.00 to $48.00 and set a “sell” rating for the company in a research note on Monday, September 8th. JPMorgan Chase & Co. initiated coverage on shares of Freshpet in a research note on Wednesday, August 20th. They set a “neutral” rating and a $70.00 price target for the company. Wall Street Zen raised shares of Freshpet from a “sell” rating to a “hold” rating in a research note on Saturday, August 9th. DA Davidson set a $101.00 target price on shares of Freshpet in a research note on Thursday, August 7th. Finally, Truist Financial decreased their target price on shares of Freshpet from $80.00 to $70.00 and set a “hold” rating for the company in a research note on Tuesday, August 5th. Eight equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $103.33.

Freshpet Price Performance

Shares of FRPT opened at $54.55 on Monday. The stock has a market capitalization of $2.66 billion, a P/E ratio of 81.42, a P/E/G ratio of 1.16 and a beta of 1.74. Freshpet has a twelve month low of $46.76 and a twelve month high of $164.07. The company has a 50 day moving average of $54.50 and a 200-day moving average of $67.86. The company has a quick ratio of 3.75, a current ratio of 4.81 and a debt-to-equity ratio of 0.40.

Freshpet (NASDAQ:FRPT) last issued its quarterly earnings results on Monday, August 4th. The company reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.21. The company had revenue of $264.69 million during the quarter, compared to analysts’ expectations of $269.75 million. Freshpet had a net margin of 3.23% and a return on equity of 4.82%. The business’s quarterly revenue was up 12.5% on a year-over-year basis. During the same period last year, the business earned ($0.03) EPS. Freshpet has set its FY 2025 guidance at EPS. As a group, equities research analysts forecast that Freshpet will post 1.55 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Walter N. George bought 1,000 shares of Freshpet stock in a transaction that occurred on Monday, September 8th. The stock was acquired at an average price of $52.57 per share, with a total value of $52,570.00. Following the acquisition, the director owned 46,527 shares of the company’s stock, valued at approximately $2,445,924.39. This represents a 2.20% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Jacki Sue Kelley bought 814 shares of Freshpet stock in a transaction that occurred on Tuesday, September 9th. The shares were bought at an average cost of $56.50 per share, with a total value of $45,991.00. Following the acquisition, the director directly owned 11,907 shares in the company, valued at $672,745.50. This trade represents a 7.34% increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders purchased 6,008 shares of company stock valued at $332,305. Company insiders own 4.43% of the company’s stock.

Institutional Trading of Freshpet

Hedge funds and other institutional investors have recently modified their holdings of the stock. Wasatch Advisors LP raised its stake in Freshpet by 41.0% in the 2nd quarter. Wasatch Advisors LP now owns 3,839,332 shares of the company’s stock worth $260,921,000 after purchasing an additional 1,116,217 shares in the last quarter. Champlain Investment Partners LLC raised its stake in Freshpet by 41.5% in the 2nd quarter. Champlain Investment Partners LLC now owns 2,568,954 shares of the company’s stock worth $174,586,000 after purchasing an additional 753,070 shares in the last quarter. Armistice Capital LLC acquired a new position in shares of Freshpet in the 1st quarter valued at approximately $59,630,000. AQR Capital Management LLC raised its position in shares of Freshpet by 278.5% in the 2nd quarter. AQR Capital Management LLC now owns 859,981 shares of the company’s stock valued at $58,444,000 after buying an additional 632,756 shares in the last quarter. Finally, Engaged Capital LLC acquired a new position in shares of Freshpet in the 2nd quarter valued at approximately $42,076,000.

Freshpet Company Profile

Freshpet, Inc, together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online.