Medifast (NYSE:MED) Stock Price Down 27.1% on Disappointing Earnings

Shares of Medifast Inc (NYSE:MED) traded down 27.1% during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $66.50 and last traded at $74.36, 3,384,556 shares changed hands during mid-day trading. An increase of 1,050% from the average session volume of 294,244 shares. The stock had previously closed at $102.00.

The specialty retailer reported $1.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.33 by ($0.01). Medifast had a return on equity of 61.06% and a net margin of 11.22%. The firm had revenue of $190.10 million for the quarter, compared to the consensus estimate of $194.70 million. During the same quarter in the previous year, the business posted $1.14 EPS. The firm’s revenue for the quarter was up 36.5% compared to the same quarter last year.

The company also recently declared a — dividend, which was paid on Thursday, November 7th. Shareholders of record on Friday, September 27th were issued a dividend of $0.75 per share. The ex-dividend date of this dividend was Thursday, September 26th. This represents a yield of 2.8%. Medifast’s payout ratio is 64.94%.

Several research analysts have issued reports on the stock. DA Davidson lowered shares of Medifast from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $250.00 to $74.00 in a report on Friday. Zacks Investment Research lowered shares of Medifast from a “buy” rating to a “hold” rating in a research note on Thursday, October 3rd. Dougherty & Co lowered shares of Medifast from a “buy” rating to a “neutral” rating in a research note on Friday. Jefferies Financial Group began coverage on shares of Medifast in a research note on Thursday, July 25th. They issued a “buy” rating and a $130.00 price objective for the company. Finally, ValuEngine lowered shares of Medifast from a “hold” rating to a “sell” rating in a research note on Friday. One investment analyst has rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the company. Medifast has an average rating of “Hold” and a consensus price target of $134.00.

Large investors have recently added to or reduced their stakes in the company. Sandy Spring Bank bought a new stake in shares of Medifast in the 2nd quarter valued at $26,000. Financial Gravity Wealth Inc. increased its stake in shares of Medifast by 853.8% in the 2nd quarter. Financial Gravity Wealth Inc. now owns 248 shares of the specialty retailer’s stock valued at $32,000 after acquiring an additional 222 shares in the last quarter. FinTrust Capital Advisors LLC bought a new stake in shares of Medifast in the 3rd quarter valued at $30,000. Advisors Preferred LLC bought a new stake in shares of Medifast in the 2nd quarter valued at $49,000. Finally, Anderson Fisher LLC bought a new stake in shares of Medifast in the 2nd quarter valued at $80,000. Institutional investors own 97.24% of the company’s stock.

The firm’s 50 day moving average price is $103.69 and its two-hundred day moving average price is $117.92. The company has a market cap of $1.33 billion, a P/E ratio of 16.10 and a beta of 0.71.

Medifast Company Profile (NYSE:MED)

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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