Vital Farms (NASDAQ:VITL) Stock Price Down 5.8% – Here’s Why

Vital Farms, Inc. (NASDAQ:VITL)’s share price dropped 5.8% during trading on Tuesday . The company traded as low as $12.04 and last traded at $12.0510. 286,889 shares traded hands during mid-day trading, a decline of 89% from the average session volume of 2,522,901 shares. The stock had previously closed at $12.79.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Wall Street Zen cut Vital Farms from a “hold” rating to a “strong sell” rating in a report on Saturday, May 9th. Weiss Ratings raised Vital Farms from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, July 7th. William Blair reiterated a “market perform” rating on shares of Vital Farms in a research report on Friday, May 8th. Stifel Nicolaus reissued a “hold” rating and set a $10.00 price objective (down from $34.00) on shares of Vital Farms in a report on Friday, May 8th. Finally, Morgan Stanley set a $10.00 price objective on shares of Vital Farms in a research report on Friday, May 8th. Five research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $24.08.

Vital Farms Stock Performance

The firm has a fifty day simple moving average of $11.79 and a 200-day simple moving average of $15.72. The company has a current ratio of 1.77, a quick ratio of 1.00 and a debt-to-equity ratio of 0.01. The stock has a market cap of $505.35 million, a price-to-earnings ratio of 11.23 and a beta of 1.07.

Vital Farms (NASDAQ:VITL) last released its earnings results on Thursday, August 6th. The company reported ($0.47) EPS for the quarter, meeting the consensus estimate of ($0.47). Vital Farms had a return on equity of 14.47% and a net margin of 6.10%.The company had revenue of $166.03 million during the quarter, compared to analysts’ expectations of $160.24 million. During the same period last year, the firm earned $0.36 EPS. The business’s revenue for the quarter was down 10.2% on a year-over-year basis. Analysts forecast that Vital Farms, Inc. will post -0.47 EPS for the current fiscal year.

Insider Transactions at Vital Farms

In other news, insider Joseph Michael Holland acquired 12,484 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was purchased at an average cost of $8.00 per share, for a total transaction of $99,872.00. Following the completion of the transaction, the insider directly owned 38,150 shares in the company, valued at $305,200. This trade represents a 48.64% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Stephanie Coon acquired 5,895 shares of the company’s stock in a transaction on Friday, May 15th. The shares were purchased at an average cost of $8.42 per share, with a total value of $49,635.90. Following the completion of the acquisition, the insider directly owned 62,314 shares in the company, valued at approximately $524,683.88. The trade was a 10.45% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 38,700 shares of company stock valued at $320,864 in the last three months. Company insiders own 3.90% of the company’s stock.

Institutional Investors Weigh In On Vital Farms

A number of institutional investors and hedge funds have recently modified their holdings of VITL. Van Berkom & Associates Inc. raised its position in shares of Vital Farms by 1,998.7% during the 1st quarter. Van Berkom & Associates Inc. now owns 2,261,533 shares of the company’s stock valued at $31,933,000 after acquiring an additional 2,153,775 shares during the last quarter. Wasatch Advisors LP lifted its stake in shares of Vital Farms by 80.2% in the 2nd quarter. Wasatch Advisors LP now owns 2,074,803 shares of the company’s stock valued at $79,921,000 after purchasing an additional 923,507 shares during the period. William Blair Investment Management LLC bought a new position in shares of Vital Farms in the 4th quarter worth $25,534,000. Balyasny Asset Management L.P. boosted its position in shares of Vital Farms by 466.5% in the 4th quarter. Balyasny Asset Management L.P. now owns 503,894 shares of the company’s stock worth $16,094,000 after purchasing an additional 641,394 shares during the last quarter. Finally, Principal Financial Group Inc. grew its stake in shares of Vital Farms by 41.6% during the first quarter. Principal Financial Group Inc. now owns 2,153,008 shares of the company’s stock worth $30,400,000 after purchasing an additional 632,537 shares during the period. 98.59% of the stock is owned by institutional investors.

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.