Vital Farms (NASDAQ:VITL) Shares Gap Up on Earnings Beat

Vital Farms, Inc. (NASDAQ:VITL) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $33.88, but opened at $36.14. Vital Farms shares last traded at $31.88, with a volume of 646,185 shares traded.

The company reported $0.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.15 by $0.08. Vital Farms had a return on equity of 22.29% and a net margin of 8.68%. The business had revenue of $165.99 million for the quarter, compared to analyst estimates of $160.32 million.

Analyst Ratings Changes

A number of analysts have weighed in on the company. TD Cowen increased their target price on Vital Farms from $41.00 to $45.00 and gave the stock a “buy” rating in a research note on Wednesday, January 8th. Craig Hallum assumed coverage on Vital Farms in a research note on Friday, December 20th. They issued a “buy” rating and a $50.00 target price on the stock. Telsey Advisory Group reiterated an “outperform” rating and issued a $52.00 target price on shares of Vital Farms in a research note on Friday. Stifel Nicolaus upgraded Vital Farms from a “hold” rating to a “buy” rating and set a $44.00 target price on the stock in a research note on Friday. Finally, William Blair restated an “outperform” rating on shares of Vital Farms in a research note on Friday. Eight investment analysts have rated the stock with a buy rating, According to MarketBeat.com, Vital Farms presently has a consensus rating of “Buy” and an average target price of $44.57.

Insider Activity

In related news, insider Matthew Ohayer sold 24,000 shares of the firm’s stock in a transaction dated Thursday, December 19th. The stock was sold at an average price of $38.19, for a total transaction of $916,560.00. Following the sale, the insider now owns 7,038,890 shares of the company’s stock, valued at $268,815,209.10. This trade represents a 0.34 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Russell Diez-Canseco sold 44,728 shares of the firm’s stock in a transaction dated Thursday, December 12th. The shares were sold at an average price of $37.66, for a total value of $1,684,456.48. Following the sale, the chief executive officer now directly owns 613,797 shares in the company, valued at approximately $23,115,595.02. The trade was a 6.79 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 190,202 shares of company stock worth $7,855,957. Company insiders own 27.60% of the company’s stock.

Institutional Investors Weigh In On Vital Farms

Institutional investors have recently added to or reduced their stakes in the business. Brown Brothers Harriman & Co. acquired a new stake in Vital Farms in the third quarter worth about $35,000. CIBC Private Wealth Group LLC boosted its holdings in Vital Farms by 152.1% in the fourth quarter. CIBC Private Wealth Group LLC now owns 895 shares of the company’s stock worth $35,000 after acquiring an additional 540 shares in the last quarter. US Bancorp DE lifted its holdings in shares of Vital Farms by 160.3% during the fourth quarter. US Bancorp DE now owns 1,416 shares of the company’s stock worth $53,000 after purchasing an additional 872 shares during the period. Frazier Financial Advisors LLC acquired a new stake in shares of Vital Farms during the fourth quarter worth about $59,000. Finally, Mendota Financial Group LLC acquired a new stake in shares of Vital Farms during the fourth quarter worth about $62,000. Institutional investors and hedge funds own 98.59% of the company’s stock.

Vital Farms Price Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 3.24 and a quick ratio of 2.81. The stock has a market cap of $1.45 billion, a price-to-earnings ratio of 29.56 and a beta of 0.90. The stock has a fifty day moving average of $38.69 and a 200 day moving average of $35.65.

About Vital Farms

Vital Farms, Inc, a food company, provides pasture-raised products in the United States. It offers shell eggs, butter, hard-boiled eggs, and liquid whole eggs. The company was founded in 2007 and is headquartered in Austin, Texas.