ValuEngine Lowers Medifast (MED) to Hold

ValuEngine lowered shares of Medifast (NYSE:MED) from a buy rating to a hold rating in a research report released on Friday.

Several other brokerages have also recently weighed in on MED. Zacks Investment Research cut shares of Medifast from a strong-buy rating to a hold rating in a research note on Thursday, October 4th. DA Davidson boosted their target price on shares of Medifast to $249.00 and gave the company a buy rating in a report on Friday, August 3rd. Finally, Sidoti upgraded shares of Medifast from a neutral rating to a buy rating in a report on Thursday, November 8th.

Shares of Medifast stock opened at $146.38 on Friday. Medifast has a twelve month low of $61.96 and a twelve month high of $260.98. The firm has a market capitalization of $1.75 billion, a P/E ratio of 63.92, a price-to-earnings-growth ratio of 1.63 and a beta of 0.54.

Medifast (NYSE:MED) last issued its quarterly earnings data on Tuesday, November 6th. The specialty retailer reported $1.14 earnings per share for the quarter, hitting the consensus estimate of $1.14. Medifast had a net margin of 10.95% and a return on equity of 43.45%. The company had revenue of $139.20 million for the quarter, compared to analysts’ expectations of $125.20 million. During the same quarter in the previous year, the firm posted $0.55 earnings per share. Medifast’s revenue for the quarter was up 80.3% on a year-over-year basis. On average, analysts forecast that Medifast will post 4.5 EPS for the current year.

The company also recently announced a quarterly dividend, which was paid on Thursday, November 8th. Investors of record on Friday, September 21st were issued a $0.48 dividend. The ex-dividend date of this dividend was Thursday, September 20th. This represents a $1.92 annualized dividend and a yield of 1.31%. Medifast’s payout ratio is 83.84%.

In other news, CEO Daniel R. Chard bought 975 shares of the company’s stock in a transaction that occurred on Thursday, November 8th. The shares were acquired at an average price of $153.28 per share, for a total transaction of $149,448.00. Following the completion of the acquisition, the chief executive officer now directly owns 12,753 shares in the company, valued at $1,954,779.84. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Constance J. Hallquist sold 1,343 shares of the business’s stock in a transaction on Friday, November 9th. The shares were sold at an average price of $160.12, for a total transaction of $215,041.16. Following the completion of the transaction, the director now owns 6,030 shares in the company, valued at approximately $965,523.60. The disclosure for this sale can be found here. 4.30% of the stock is owned by insiders.

A number of hedge funds have recently added to or reduced their stakes in the stock. Raymond James & Associates raised its holdings in shares of Medifast by 13.2% during the second quarter. Raymond James & Associates now owns 2,569 shares of the specialty retailer’s stock valued at $411,000 after purchasing an additional 300 shares during the period. Smith Asset Management Group LP raised its holdings in shares of Medifast by 3.2% during the third quarter. Smith Asset Management Group LP now owns 9,574 shares of the specialty retailer’s stock valued at $2,121,000 after purchasing an additional 300 shares during the period. Cambridge Investment Research Advisors Inc. raised its holdings in shares of Medifast by 4.2% during the second quarter. Cambridge Investment Research Advisors Inc. now owns 7,827 shares of the specialty retailer’s stock valued at $1,254,000 after purchasing an additional 319 shares during the period. Comerica Bank raised its holdings in shares of Medifast by 2.8% during the third quarter. Comerica Bank now owns 11,564 shares of the specialty retailer’s stock valued at $2,395,000 after purchasing an additional 319 shares during the period. Finally, American International Group Inc. raised its holdings in shares of Medifast by 3.8% during the third quarter. American International Group Inc. now owns 9,212 shares of the specialty retailer’s stock valued at $2,041,000 after purchasing an additional 334 shares during the period. Institutional investors and hedge funds own 87.53% of the company’s stock.

Medifast Company Profile

Medifast, Inc, through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products. It offers bars, bites, pretzels, puffs, oatmeal and cereal crunch products, drinks, hearty choices, pancakes, puddings, soft serves, shakes, smoothies, soft bakes, and soups under the Medifast, OPTAVIA, Thrive by Medifast, Optimal Health by OPTAVIA, Flavors of Home, and Essential 1 brands.

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To view ValuEngine’s full report, visit ValuEngine’s official website.

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