Benchmark Starts Coverage on Vital Farms with Strong Buy Rating

Shares of Vital Farms (NASDAQ: VITL) are attracting attention as Benchmark recently initiated coverage with a “buy” rating and set a price target of $60.00. This target suggests a potential upside of 86.45% from the company’s most recent closing price, according to a report from MarketBeat.com released on November 4, 2023.

The positive sentiment surrounding Vital Farms is echoed by other equity analysts. For instance, the Telsey Advisory Group reaffirmed an “outperform” rating with a price target of $50.00 on the same day. Additionally, Cowen maintained a “buy” rating, while DA Davidson raised their price objective from $51.00 to $52.00. Stifel Nicolaus also increased their target price from $44.00 to $48.00, further supporting a bullish outlook on the stock. Conversely, Weiss Ratings downgraded Vital Farms from a “buy (b-)” rating to a “hold (c+)” on November 7.

As of now, one analyst has rated the stock as a Strong Buy, twelve have given it a Buy rating, and one has issued a Hold rating. Based on aggregated data from MarketBeat.com, Vital Farms holds a consensus rating of “Buy” with an average price target of $51.70.

Recent Earnings and Performance Metrics

Vital Farms recently reported its earnings for the quarter ending on November 4, 2023. The company achieved earnings per share (EPS) of $0.36, exceeding the consensus estimate of $0.30 by $0.06. Their return on equity stood at 20.19%, with a net margin of 8.50%. The company generated revenue of $198.94 million, surpassing analyst expectations of $191.35 million. This represents a significant increase of 37.2% compared to the same quarter last year when Vital Farms reported an EPS of $0.16.

In anticipation of future performance, analysts project that Vital Farms will post $1.11 earnings per share for the current fiscal year.

Insider Transactions and Institutional Interest

Recent insider trading activities have also drawn interest. On August 22, insider Joanne Bal sold 4,796 shares at an average price of $50.95, totaling approximately $244,356.20. Following this transaction, Bal retained 43,332 shares, valued at around $2,207,765.40. This sale represents a 9.97% decrease in her holdings.

Another significant transaction occurred on September 2, when insider Matthew Ohayer sold 145,000 shares for approximately $7,537,100.00 at an average price of $51.98. After this sale, Ohayer owned 6,582,070 shares, valued at about $342,135,998.60, reflecting a 2.16% decrease in ownership. In total, insiders sold 411,163 shares worth $20,448,016 in the last three months, with insiders currently holding 21.30% of the stock.

Institutional investors have also been active regarding Vital Farms. During the third quarter, Exchange Traded Concepts LLC purchased a new position valued at $28,000. Meanwhile, Caitong International Asset Management Co. Ltd significantly increased its position by 20,650.0%, now owning 1,660 shares valued at $51,000 after acquiring an additional 1,652 shares.

Other institutional investors, such as US Bancorp DE and CWM LLC, have also increased their stakes in Vital Farms, reflecting growing confidence in the company. Currently, institutional investors own approximately 98.59% of the shares.

About Vital Farms

Founded in 2007 and headquartered in Austin, Texas, Vital Farms, Inc. specializes in providing pasture-raised products across the United States. Its product offerings include shell eggs, butter, hard-boiled eggs, and liquid whole eggs. The company has experienced significant growth and continues to be a prominent player in the food sector.

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