Vital Farms (NASDAQ:VITL) Shares Gap Down Following Weak Earnings

Vital Farms, Inc. (NASDAQ:VITL) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. 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 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($0.03). Vital Farms had a net margin of 8.50% and a return on equity of 20.19%. The business had revenue of $213.55 million during the quarter, compared to analyst estimates of $212.83 million. During the same period in the prior year, the business posted $0.23 earnings per share. The company’s revenue for the quarter was up 28.6% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. BMO Capital Markets reduced their price objective on Vital Farms from $60.00 to $50.00 and set an “outperform” rating for the company in a research report on Thursday, December 18th. Jefferies Financial Group reiterated a “buy” rating and set a $52.00 target price on shares of Vital Farms in a research note on Wednesday, December 17th. Zacks Research lowered shares of Vital Farms from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 14th. TD Cowen restated a “buy” rating on shares of Vital Farms in a report on Tuesday, January 20th. Finally, Benchmark reaffirmed a “buy” rating on shares of Vital Farms in a research report on Wednesday, January 14th. Twelve equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Vital Farms currently has a consensus rating of “Moderate Buy” and an average target price of $49.91.

Insider Buying and Selling at Vital Farms

In other news, insider Matthew Ohayer sold 20,000 shares of Vital Farms stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $27.91, for a total transaction of $558,200.00. Following the sale, the insider directly owned 6,341,190 shares in the company, valued at approximately $176,982,612.90. The trade was a 0.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Russell Diez-Canseco sold 16,734 shares of the company’s stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $35.05, for a total transaction of $586,526.70. Following the completion of the sale, the chief executive officer directly owned 649,684 shares in the company, valued at approximately $22,771,424.20. The trade was a 2.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 91,734 shares of company stock worth $2,921,477 in the last three months. Insiders own 21.30% of the company’s stock.

Institutional Investors Weigh In On Vital Farms

Institutional investors have recently added to or reduced their stakes in the stock. Triumph Capital Management bought a new position in shares of Vital Farms during the 4th quarter worth approximately $25,000. Quarry LP bought a new stake in Vital Farms in the fourth quarter valued at $27,000. Exchange Traded Concepts LLC acquired a new position in Vital Farms during the third quarter worth $28,000. Global Retirement Partners LLC lifted its holdings in shares of Vital Farms by 4,382.6% during the fourth quarter. Global Retirement Partners LLC now owns 1,031 shares of the company’s stock valued at $33,000 after acquiring an additional 1,008 shares during the period. Finally, PNC Financial Services Group Inc. lifted its holdings in shares of Vital Farms by 225.6% during the fourth quarter. PNC Financial Services Group Inc. now owns 1,452 shares of the company’s stock valued at $46,000 after acquiring an additional 1,006 shares during the period. 98.59% of the stock is owned by institutional investors and hedge funds.

Vital Farms Price Performance

The company’s 50 day moving average price is $29.04 and its 200 day moving average price is $36.40. The company has a debt-to-equity ratio of 0.02, a quick ratio of 2.15 and a current ratio of 2.65. The company has a market cap of $910.56 million, a price-to-earnings ratio of 15.50 and a beta of 1.10.

Vital Farms Company Profile

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.