Does Vital Farms Inc. (VITL) Have A Cheap Price Or Is It Risky?

The stock of Vital Farms Inc. (NASDAQ:VITL) increased by $1.03 on Wednesday to $12.38, up 9.07 percent. The last five days have seen an average of 297,830 shares of common stock traded. 9 times new highs were reached in the current year, with a fall of -$1.74. The average number of shares traded over the last 20 days was 505,258, while the average volume over the last 50 days totaled 451,593.

VITL stock appreciated 11.23% since last month. On 07/17/23, the company’s shares reached a one-month low of $10.27. The stock touched a high of $18.18 on 01/20/23, after rallying from a low of $10.00 in 52 weeks. The price of VITL stock has declined by -17.02% or -$1.74 this year, reaching a new high 9 times. Still, the stock price is down -31.90% from the 52-week high.

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Valuation Metrics

Vital Farms Inc. (VITL) has a trailing price-to-earnings (P/E) ratio of 33.28. Beta for the stock is 0.59. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.19, the price-to-book (PB) ratio of 2.88, and the price-to-cash flow ratio of 145.77.

Financial Health

For the three months ended June 29, Vital Farms Inc.’s quick ratio was 2.50, while its current ratio was 3.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.04, and the total debt to equity ratio is 0.04. As far as profitability goes, gross margin for the trailing twelve months is 33.50% percent. Vital Farms Inc.’s EBITDA margin for the year ended June 29 was 2.60%, whereas its operating margin stood at 5.70% for the same period. Based on annual data, it had gross profit of $109.44 million and revenue of $362.05 million.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. VITL’s return on assets (ROA) during the last 12 months has been 7.40%. There was a 0.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 10.00%.

Earnings Surprise

According to Vital Farms Inc.’s quarterly financial report for the quarter that ended June 29, it had $45.86 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $106.45 million, while revenues rose by 22.15% to $119.17 million. It was predicted that Vital Farms Inc.’s quarterly earnings would be $0.15, but it ended up being $0.07, beating the consensus by 114.30%. EBITDA was $10.75 million for the quarter. At the end of Vital Farms Inc.’s most recent quarter ended June 29, its liabilities totaled 60.28 million, while its total debt was $9.2 million. Equity owned by shareholders amounts to $41.24 million.

Technical Picture

Here’s a quick look at Vital Farms Inc.’s (VITL) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 64.72%, suggesting the stock is Neutral, with a 93.85% historical volatility rate.

The stochastic %K and %D were 40.55% and 35.88% respectively, while the average true range (ATR) was 0.89. Based on the 14-day stochastic reading of 68.41%, the RSI (14) reading is 60.38%. On the 9-day MACD Oscillator, the stock is at -0.02, and the 14-day reading is at 0.18.

Analyst Ratings

Analysts have assigned Vital Farms Inc. (VITL) an Overweight rating. VITL is a stock that is recommended for selling by 0 brokerage firms, while 2 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 5 others recommend it as a buy.

What is VITL’s price target for the next 12 months?

The current consensus forecast for the stock is between $15.00 and $22.00, with a median target price of $19.00. In analyzing these forecasts, the average price target given by analysts for Vital Farms Inc. (VITL) is $18.67.

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