Freshpet’s Target Price Raised to $67 as Analysts React

Analysts at Bank of America have raised the target price for Freshpet (NASDAQ:FRPT) from $60.00 to $67.00, reflecting a potential upside of 6.06% based on the stock’s closing value. The firm has maintained a “neutral” rating on the pet food company’s shares, according to a research note released on Friday.

Several other financial institutions have provided their assessments of Freshpet in recent days. On Tuesday, Morgan Stanley initiated coverage with an “equal weight” rating and set a target price of $71.00. Conversely, DA Davidson reduced its target for Freshpet from $101.00 to $83.00, while maintaining a “buy” rating. Truist Financial has also cut its price target from $70.00 to $50.00 and assigned a “hold” rating. Meanwhile, Wells Fargo & Company lowered its price objective for Freshpet from $88.00 to $65.00 while keeping an “overweight” rating.

Currently, out of 18 analysts, six have rated Freshpet as a Buy, ten as Hold, and two have issued Sell ratings. According to MarketBeat data, the stock holds an average rating of “Hold” and an average target price of $82.63.

Freshpet’s Stock Performance and Financials

On Friday, shares of Freshpet traded down $2.46, reaching $63.17 in midday trading. The trading volume was reported at 378,599 shares, significantly lower than the average volume of 1,381,002. The company boasts a market capitalization of $3.08 billion, a price-to-earnings (P/E) ratio of 27.58, and a beta of 1.72. Freshpet’s stock has fluctuated between a one-year low of $46.76 and a one-year high of $164.07.

In its latest quarterly earnings report on November 3, 2023, Freshpet reported earnings per share (EPS) of $1.86, surpassing the consensus estimate of $0.43 by $1.43. The company generated revenue of $288.85 million, exceeding expectations of $283.73 million. This represented a 14.0% increase in revenue compared to the same period last year, during which the company earned $0.24 per share. Analysts predict Freshpet will post an EPS of 1.55 for the current fiscal year.

Insider Trading and Institutional Involvement

In related news, Freshpet’s President, Scott James Morris, sold 63,135 shares of the company on November 6, 2023, at an average price of $55.21, amounting to a total transaction value of $3,485,683.35. Following this sale, Morris retains 160,476 shares, valued at approximately $8,859,879.96, indicating a 28.23% decrease in his holdings. This transaction was disclosed in a filing with the Securities and Exchange Commission (SEC).

Recent activity from institutional investors indicates ongoing interest in Freshpet. For instance, Nordea Investment Management AB acquired a new stake in the company during the second quarter, valued at approximately $648,000. In the first quarter, Jump Financial LLC increased its holdings by 688.5%, now owning 96,542 shares worth $8,029,000. Other notable changes include AQR Capital Management LLC’s increase of 68.8% in its position, boosting its holdings to 227,225 shares valued at $18,817,000.

As Freshpet continues to innovate and expand its offerings of fresh, refrigerated meals and treats for pets, the company remains in the spotlight for both analysts and investors. With a focus on high-quality, minimally processed ingredients, Freshpet aims to set itself apart from traditional pet food options.