Vital Farms (NASDAQ:VITL) Shares Gap Down After Earnings Miss

Vital Farms, Inc. (NASDAQ:VITL) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $24.79, but opened at $20.63. Vital Farms shares last traded at $20.6210, with a volume of 3,202,519 shares traded.

The company reported $0.35 EPS for the quarter, missing the consensus estimate of $0.38 by ($0.03). Vital Farms had a return on equity of 20.19% and a net margin of 8.50%.The business had revenue of $213.55 million during the quarter, compared to the consensus estimate of $212.83 million. During the same period in the prior year, the firm earned $0.23 earnings per share. The business’s quarterly revenue was up 28.6% on a year-over-year basis.

Vital Farms News Summary

Here are the key news stories impacting Vital Farms this week:

• Positive Sentiment: Q4 revenue growth and company FY26 revenue range: Vital Farms reported Q4 revenue of $213.6M (up ~28.6% YoY) and issued FY26 revenue guidance of $900–$920M, signaling continued top-line expansion that some view as constructive. Q4 Highlights
• Neutral Sentiment: Board leadership update for continuity: Founder Matt O’Hayer stepped down from the board; CEO Russell Diez-Canseco was named Executive Chairperson and Denny Marie Post remains Lead Independent Director — a planned transition the company says preserves strategy execution. Board Transition
• Negative Sentiment: EPS missed estimates: Reported EPS of $0.35 missed consensus ~$0.38, which disappointed investors despite the revenue beat/inline result and may pressure near-term multiple expansion. Earnings Miss
• Negative Sentiment: Guidance interpreted as mixed/weak by some: While the company released a revenue range, some analysts and coverage (including Seeking Alpha summaries) characterized FY26 sales guidance as below expectations, contributing to selling pressure. Guidance Reaction
• Negative Sentiment: Analyst downgrade: Benchmark cut VITL from Buy to Hold, adding downward pressure on sentiment following the print. Analyst Downgrade
• Negative Sentiment: Investor legal risk: Rosen Law Firm is soliciting inquiries about a securities class-action investigation related to Vital Farms, which increases legal overhang and can amplify volatility. Class Action Notice

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on VITL shares. Mizuho decreased their target price on shares of Vital Farms from $53.00 to $48.00 and set an “outperform” rating on the stock in a research report on Wednesday, November 26th. TD Cowen reiterated a “buy” rating on shares of Vital Farms in a research report on Tuesday, January 20th. Telsey Advisory Group reiterated an “outperform” rating and set a $50.00 price objective on shares of Vital Farms in a research note on Tuesday, January 13th. Benchmark cut shares of Vital Farms from a “buy” rating to a “hold” rating in a research report on Thursday. Finally, Needham & Company LLC reissued a “buy” rating and set a $45.00 price target on shares of Vital Farms in a report on Friday, January 30th. Eleven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $49.91.

Insider Transactions at Vital Farms

In other Vital Farms news, insider Matthew Ohayer sold 20,000 shares of the stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $27.91, for a total value of $558,200.00. Following the completion of the sale, the insider directly owned 6,341,190 shares in the company, valued at $176,982,612.90. This represents a 0.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Russell Diez-Canseco sold 16,734 shares of the firm’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $35.05, for a total transaction of $586,526.70. Following the sale, the chief executive officer owned 649,684 shares in the company, valued at $22,771,424.20. This trade represents a 2.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 91,734 shares of company stock valued at $2,921,477 in the last quarter. 21.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Vital Farms

Institutional investors have recently modified their holdings of the company. Royal Bank of Canada raised its holdings in shares of Vital Farms by 89.2% in the first quarter. Royal Bank of Canada now owns 19,381 shares of the company’s stock valued at $591,000 after purchasing an additional 9,136 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Vital Farms by 5.8% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,057 shares of the company’s stock valued at $611,000 after purchasing an additional 1,108 shares during the last quarter. Goldman Sachs Group Inc. increased its position in shares of Vital Farms by 3.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 415,420 shares of the company’s stock worth $12,658,000 after purchasing an additional 13,397 shares during the last quarter. Woodline Partners LP acquired a new stake in Vital Farms in the first quarter valued at $1,073,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Vital Farms by 1.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 89,893 shares of the company’s stock valued at $2,739,000 after acquiring an additional 1,198 shares during the last quarter. 98.59% of the stock is currently owned by institutional investors.

Vital Farms Trading Down 10.8%

The company has a market cap of $990.09 million, a P/E ratio of 16.75 and a beta of 1.10. The business’s 50-day moving average price is $28.84 and its 200 day moving average price is $36.30. The company has a debt-to-equity ratio of 0.02, a quick ratio of 2.15 and a current ratio of 2.65.

About Vital Farms

Vital Farms, traded on the NASDAQ under the symbol VITL, is a U.S.-based food company specializing in pasture-raised egg and dairy products. The company partners with a network of family farms across the United States to produce eggs, butter and related items under a certified humane, pasture-centric farming model. Vital Farms’ supply chain emphasizes animal welfare, environmental stewardship and transparent sourcing, appealing to consumers seeking ethically produced, high-quality ingredients.

Founded in 2007 and headquartered in Austin, Texas, Vital Farms began by marketing pasture-raised eggs to health- and ethically minded shoppers.