Freshpet (NASDAQ:FRPT) Shares Gap Up on Earnings Beat

Shares of Freshpet, Inc. (NASDAQ:FRPT) gapped up prior to trading on Monday after the company announced better than expected quarterly earnings. The stock had previously closed at $49.21, but opened at $53.27. Freshpet shares last traded at $54.0450, with a volume of 961,213 shares trading hands.

The company reported $1.86 earnings per share for the quarter, topping the consensus estimate of $0.43 by $1.43. Freshpet had a net margin of 3.23% and a return on equity of 4.82%. The firm had revenue of $288.85 million during the quarter, compared to the consensus estimate of $283.73 million. During the same quarter in the prior year, the firm earned $0.24 EPS. The company’s revenue for the quarter was up 14.0% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of analysts have commented on FRPT shares. Bank of America reiterated a “neutral” rating and issued a $60.00 price objective (down previously from $81.00) on shares of Freshpet in a report on Wednesday, October 8th. UBS Group cut their price objective on shares of Freshpet from $65.00 to $48.00 and set a “sell” rating for the company in a report on Monday, September 8th. Wall Street Zen upgraded shares of Freshpet from a “sell” rating to a “hold” rating in a report on Saturday, August 9th. Zacks Research downgraded shares of Freshpet from a “strong-buy” rating to a “strong sell” rating in a report on Monday, October 20th. Finally, Wells Fargo & Company cut their price objective on shares of Freshpet from $88.00 to $65.00 and set an “overweight” rating for the company in a report on Thursday, September 25th. Eight analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $98.47.

Insider Activity at Freshpet

In other Freshpet news, Director Timothy R. Mclevish acquired 3,500 shares of the firm’s stock in a transaction that occurred on Wednesday, September 10th. The shares were purchased at an average cost of $56.00 per share, for a total transaction of $196,000.00. Following the completion of the acquisition, the director owned 35,290 shares of the company’s stock, valued at approximately $1,976,240. The trade was a 11.01% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Jacki Sue Kelley acquired 814 shares of the firm’s stock in a transaction that occurred on Tuesday, September 9th. The stock was acquired at an average price of $56.50 per share, for a total transaction of $45,991.00. Following the completion of the acquisition, the director directly owned 11,907 shares of the company’s stock, valued at $672,745.50. The trade was a 7.34% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have acquired 6,008 shares of company stock worth $332,305. Insiders own 4.43% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in FRPT. Wasatch Advisors LP lifted its holdings in Freshpet by 41.0% in the second quarter. Wasatch Advisors LP now owns 3,839,332 shares of the company’s stock valued at $260,921,000 after acquiring an additional 1,116,217 shares during the last quarter. Champlain Investment Partners LLC boosted its position in shares of Freshpet by 41.5% during 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 during the period. Armistice Capital LLC purchased a new position in shares of Freshpet during the 1st quarter worth approximately $59,630,000. AQR Capital Management LLC boosted its position in shares of Freshpet by 278.5% during the 2nd quarter. AQR Capital Management LLC now owns 859,981 shares of the company’s stock worth $58,444,000 after purchasing an additional 632,756 shares during the period. Finally, Engaged Capital LLC purchased a new position in shares of Freshpet during the 2nd quarter worth approximately $42,076,000.

Freshpet Price Performance

The company has a debt-to-equity ratio of 0.40, a quick ratio of 3.75 and a current ratio of 4.81. The stock has a market cap of $2.74 billion, a PE ratio of 83.96, a PEG ratio of 1.10 and a beta of 1.76. The stock’s 50-day moving average is $53.12 and its two-hundred day moving average is $66.12.

About Freshpet

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.