Trupanion (NASDAQ:TRUP) Shares Gap Down on Disappointing Earnings

Trupanion, Inc. (NASDAQ:TRUP)’s stock price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $47.51, but opened at $40.45. Trupanion shares last traded at $37.62, with a volume of 523,279 shares.

The financial services provider reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.02). The company had revenue of $337.31 million for the quarter, compared to analyst estimates of $335.41 million. Trupanion had a negative return on equity of 3.11% and a negative net margin of 0.75%.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on TRUP shares. Northland Securities raised their price objective on Trupanion from $45.00 to $50.00 and gave the company a “market perform” rating in a research note on Thursday, October 31st. Stifel Nicolaus reduced their price objective on Trupanion from $44.00 to $41.00 and set a “hold” rating on the stock in a research note on Thursday. Finally, Piper Sandler reduced their price objective on Trupanion from $57.00 to $52.00 and set an “overweight” rating on the stock in a research note on Thursday. Two analysts have rated the stock with a hold rating, four have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, Trupanion currently has a consensus rating of “Moderate Buy” and an average price target of $46.60.

Insider Activity

In other news, CFO Fawwad Qureshi sold 9,867 shares of Trupanion stock in a transaction dated Friday, November 29th. The stock was sold at an average price of $53.08, for a total transaction of $523,740.36. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Emily Dreyer sold 900 shares of Trupanion stock in a transaction dated Monday, November 25th. The shares were sold at an average price of $54.55, for a total value of $49,095.00. Following the sale, the senior vice president now directly owns 23,808 shares in the company, valued at $1,298,726.40. The trade was a 3.64 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 11,581 shares of company stock valued at $615,159. 5.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Trupanion

Hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its position in shares of Trupanion by 1.3% during the fourth quarter. Vanguard Group Inc. now owns 3,596,725 shares of the financial services provider’s stock worth $173,362,000 after acquiring an additional 45,653 shares during the last quarter. Wellington Management Group LLP raised its position in shares of Trupanion by 4.4% during the third quarter. Wellington Management Group LLP now owns 3,393,879 shares of the financial services provider’s stock worth $142,475,000 after acquiring an additional 142,156 shares during the last quarter. FMR LLC raised its position in shares of Trupanion by 55,963.7% during the third quarter. FMR LLC now owns 1,172,293 shares of the financial services provider’s stock worth $49,213,000 after acquiring an additional 1,170,202 shares during the last quarter. Marshall Wace LLP raised its position in shares of Trupanion by 6.9% during the fourth quarter. Marshall Wace LLP now owns 901,645 shares of the financial services provider’s stock worth $43,459,000 after acquiring an additional 57,804 shares during the last quarter. Finally, Balyasny Asset Management L.P. raised its position in shares of Trupanion by 368.2% during the fourth quarter. Balyasny Asset Management L.P. now owns 841,254 shares of the financial services provider’s stock worth $40,548,000 after acquiring an additional 661,559 shares during the last quarter.

Trupanion Stock Down 6.9 %

The company has a debt-to-equity ratio of 0.40, a current ratio of 1.66 and a quick ratio of 1.66. The company has a market capitalization of $1.40 billion, a P/E ratio of -143.26, a P/E/G ratio of 8.29 and a beta of 1.60. The stock has a 50-day moving average price of $48.04 and a 200-day moving average price of $47.89.

About Trupanion

Trupanion, Inc, together with its subsidiaries, provides medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Continental Europe, and Australia. The company operates in two segments, Subscription Business and Other Business. It serves pet owners and veterinarians.