Freshpet (NASDAQ:FRPT) Shares Down 17.3% – Here’s Why

Freshpet, Inc. (NASDAQ:FRPT) traded down 17.3% during trading on Tuesday . The company traded as low as $53.90 and last traded at $53.4610. 1,356,053 shares changed hands during trading, a decline of 4% from the average session volume of 1,415,757 shares. The stock had previously closed at $64.68.

Freshpet News Roundup

Here are the key news stories impacting Freshpet this week:

• Positive Sentiment: Analysts pushed back on competitive-threat concerns, supporting the stock after some market worry that private-label and DTC pet-food rivals would dent Freshpet’s growth. Freshpet stock gains after analysts dismisses competitive threats
• Positive Sentiment: Freshpet was highlighted as one of the “best mid‑cap consumer defensive” names in a recent stock roundup, which can attract interest from defensive and dividend‑style investors. 5 Best Mid-Cap Consumer Defensive Stocks to Buy
• Neutral Sentiment: Coverage of the recent price action noted a larger-than-market decline; this is descriptive market reporting rather than new fundamental news. Here’s Why Freshpet (FRPT) Fell More Than Broader Market
• Neutral Sentiment: Recent short‑interest reports in some feeds showed large changes but contained inconsistent/zero values, suggesting the data should be treated with caution and isn’t a clear driver. (Multiple data feeds reported anomalies.)
• Negative Sentiment: Pomerantz LLP opened an investor investigation into Freshpet, which raises legal/settlement risk and often increases near‑term volatility for stocks under review. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Freshpet, Inc. – FRPT
• Negative Sentiment: Levi & Korsinsky also announced an investigation tied to a recent NAD ruling and a competitor’s challenge, compounding legal/regulatory headlines and investor concern. Fraud Investigation Opened: Levi & Korsinsky Investigates Freshpet, Inc. (FRPT)
• Negative Sentiment: JPMorgan cut its price target (from $80 to $66) and set a neutral rating, which reduces upside expectations from a major broker and likely pressured sentiment. Benzinga coverage of JPMorgan price target change
• Negative Sentiment: Commentary from Jim Cramer flagged margin concerns and described the stock as “too hot versus the cohort,” which can prompt profit‑taking among retail traders. Jim Cramer on Freshpet, Inc.: “I Think That This Stock Has Been Too Hot Versus the Cohort”

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the stock. Deutsche Bank Aktiengesellschaft downgraded shares of Freshpet from a “buy” rating to a “hold” rating and set a $62.00 price objective for the company. in a report on Monday, December 15th. Bank of America boosted their target price on shares of Freshpet from $60.00 to $67.00 and gave the company a “neutral” rating in a research note on Friday, December 19th. Oppenheimer raised shares of Freshpet from a “market perform” rating to an “outperform” rating and set a $80.00 target price for the company in a research report on Friday, March 20th. DA Davidson set a $98.00 price target on shares of Freshpet in a research note on Wednesday, February 25th. Finally, TD Cowen reaffirmed a “hold” rating on shares of Freshpet in a report on Tuesday, March 17th. Nine investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Freshpet currently has a consensus rating of “Hold” and an average target price of $76.00.

Freshpet Trading Down 2.2%

The firm has a fifty day moving average of $72.52 and a two-hundred day moving average of $62.18. The company has a market cap of $2.88 billion, a PE ratio of 22.88, a price-to-earnings-growth ratio of 1.93 and a beta of 1.66. The company has a current ratio of 5.54, a quick ratio of 4.57 and a debt-to-equity ratio of 0.35.

Freshpet (NASDAQ:FRPT) last announced its quarterly earnings data on Monday, February 23rd. The company reported $0.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.21. The business had revenue of $285.23 million for the quarter, compared to analysts’ expectations of $285.66 million. Freshpet had a return on equity of 6.93% and a net margin of 12.63%.The firm’s quarterly revenue was up 8.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.36 EPS. As a group, sell-side analysts predict that Freshpet, Inc. will post 1.55 EPS for the current year.

Institutional Trading of Freshpet

Institutional investors have recently modified their holdings of the business. Wasatch Advisors LP raised its holdings in Freshpet by 41.0% during the 2nd quarter. Wasatch Advisors LP now owns 3,839,332 shares of the company’s stock valued at $260,921,000 after acquiring an additional 1,116,217 shares during the period. Balyasny Asset Management L.P. lifted its position in shares of Freshpet by 1,031.9% during the fourth quarter. Balyasny Asset Management L.P. now owns 931,905 shares of the company’s stock worth $56,781,000 after acquiring an additional 1,031,905 shares in the last quarter. Capital World Investors boosted its holdings in shares of Freshpet by 151.8% in the third quarter. Capital World Investors now owns 1,482,778 shares of the company’s stock worth $81,716,000 after acquiring an additional 893,949 shares during the period. Alberta Investment Management Corp bought a new position in shares of Freshpet in the third quarter worth $41,862,000. Finally, Armistice Capital LLC grew its position in shares of Freshpet by 118.4% in the third quarter. Armistice Capital LLC now owns 1,234,802 shares of the company’s stock valued at $68,050,000 after purchasing an additional 669,399 shares in the last quarter.

About Freshpet

Freshpet Inc (NASDAQ: FRPT) is a leading pet food company specializing in fresh, refrigerated meals and treats for dogs and cats. The company’s products are formulated with carefully selected, natural ingredients and are designed to offer a higher level of nutrition and freshness than traditional dry or canned pet foods. Freshpet’s offerings include refrigerated rolls, pâtés and snacks, all of which are sold through the refrigerated section of grocery, mass-market and pet specialty stores.

Freshpet’s product portfolio is built around the concept of fresh, minimally processed recipes that do not require preservatives or artificial colors.