Medifast (NYSE:MED) Stock Gets Downgrade from Zacks Research

Medifast (NYSE:MED) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Wednesday, Zacks reports.

Separately, Weiss Ratings cut shares of Medifast from a “sell (d)” rating to a “sell (d-)” rating in a research report on Wednesday, October 28th. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Medifast presently has an average rating of “Reduce” and an average target price of $12.00.

Medifast Price Performance

NYSE:MED opened at $12.89 on Wednesday. The firm has a market capitalization of $144.07 million, a price-to-earnings ratio of -3.49 and a beta of 0.65. Medifast has a 1 year low of $9.22 and a 1 year high of $13.63. The business has a 50 day simple moving average of $12.14 and a 200-day simple moving average of $11.38.

Medifast (NYSE:MED) last released its earnings results on Monday, October 26th. The specialty retailer reported ($0.19) earnings per share for the quarter, beating the consensus estimate of ($0.35) by $0.16. Medifast had a negative return on equity of 6.90% and a negative net margin of 13.64%. The firm had revenue of $72.05 million for the quarter, compared to the consensus estimate of $71.30 million. As a group, analysts expect that Medifast will post -0.57 earnings per share for the current fiscal year.

Insider Activity

In other Medifast news, Director Daniel Chard sold 9,544 shares of the firm’s stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $11.73, for a total value of $111,951.12. Following the completion of the sale, the director owned 130,609 shares of the company’s stock, valued at $1,532,043.57. This trade represents a 6.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Parsa Kiai bought 5,557 shares of the company’s stock in a transaction on Wednesday, October 28th. The shares were acquired at an average price of $12.24 per share, with a total value of $68,017.68. Following the transaction, the director directly owned 712,891 shares of the company’s stock, valued at approximately $8,725,785.84. This trade represents a 0.79% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 126,184 shares of company stock valued at $1,500,207. 3.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Medifast

A number of large investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in Medifast in the second quarter worth $3,920,000. Dimensional Fund Advisors LP boosted its stake in shares of Medifast by 10.9% during the first quarter. Dimensional Fund Advisors LP now owns 361,762 shares of the specialty retailer’s stock valued at $3,686,000 after purchasing an additional 35,522 shares during the period. Commons Capital LLC boosted its stake in shares of Medifast by 23.0% during the third quarter. Commons Capital LLC now owns 184,432 shares of the specialty retailer’s stock valued at $2,125,000 after purchasing an additional 34,516 shares during the period. Bank of America Corp DE bought a new position in shares of Medifast in the second quarter worth about $924,000. Finally, Empowered Funds LLC grew its holdings in shares of Medifast by 59.9% in the first quarter. Empowered Funds LLC now owns 71,584 shares of the specialty retailer’s stock worth $729,000 after purchasing an additional 26,811 shares during the last quarter. Hedge funds and other institutional investors own 95.51% of the company’s stock.

Medifast Company Profile

Medifast, Inc. is a health and wellness company focused on weight management and healthy living. Its products and programs are marketed primarily under the OPTAVIA brand. OPTAVIA offers structured plans that combine portion-controlled meal replacements and other nutrition products with guidance from independent coaches. The company’s approach emphasizes nutrition, behavior changes and ongoing support. Founded in 1980, Medifast serves customers primarily in the United States. Its business centers on selling products and connecting customers with coaches who provide support as they follow the company’s programs.