Medifast (NYSE:MED) Downgraded by Zacks Research to “Hold”

Zacks Research cut shares of Medifast (NYSE:MED) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday morning,Zacks reports.

Separately, Weiss Ratings downgraded Medifast from a “sell (d)” rating to a “sell (d-)” rating in a research report on Wednesday, October 28th. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $12.00.

Medifast Stock Performance

MED opened at $12.89 on Wednesday. The stock has a market capitalization of $144.07 million, a price-to-earnings ratio of -3.49 and a beta of 0.65. The company has a fifty day moving average of $12.14 and a 200 day moving average of $11.38. Medifast has a fifty-two week low of $9.22 and a fifty-two week high of $13.63.

Medifast (NYSE:MED) last announced its quarterly earnings results on Monday, October 26th. The specialty retailer reported ($0.19) EPS for the quarter, topping the consensus estimate of ($0.35) by $0.16. The business had revenue of $72.05 million for the quarter, compared to analysts’ expectations of $71.30 million. Medifast had a negative net margin of 13.64% and a negative return on equity of 6.90%. On average, equities research analysts forecast that Medifast will post -0.57 earnings per share for the current year.

Insiders Place Their Bets

In other Medifast news, Director Parsa Kiai bought 43,150 shares of the business’s stock in a transaction that occurred on Wednesday, August 26th. The stock was purchased at an average cost of $12.26 per share, with a total value of $529,019.00. Following the completion of the acquisition, the director owned 707,492 shares in the company, valued at $8,673,851.92. This trade represents a 6.50% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Daniel Chard sold 9,545 shares of the business’s stock in a transaction on Monday, September 28th. The stock was sold at an average price of $11.98, for a total transaction of $114,349.10. Following the completion of the sale, the director owned 140,153 shares in the company, valued at $1,679,032.94. This represents a 6.38% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders purchased 126,184 shares of company stock valued at $1,500,207. 3.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Medifast

A number of institutional investors and hedge funds have recently made changes to their positions in MED. Advisors Asset Management Inc. purchased a new stake in shares of Medifast during the 3rd quarter valued at about $106,000. Commons Capital LLC grew its position in Medifast by 23.0% in the third quarter. Commons Capital LLC now owns 184,432 shares of the specialty retailer’s stock worth $2,125,000 after acquiring an additional 34,516 shares in the last quarter. Engineers Gate Manager LP grew its position in Medifast by 25.9% in the second quarter. Engineers Gate Manager LP now owns 49,829 shares of the specialty retailer’s stock worth $529,000 after acquiring an additional 10,249 shares in the last quarter. Squarepoint Ops LLC purchased a new position in Medifast in the second quarter worth about $214,000. Finally, Chico Wealth RIA purchased a new position in Medifast in the second quarter worth about $223,000. 95.51% of the stock is owned by hedge funds and other institutional investors.

About Medifast

Medifast, Inc. is a health and wellness company focused on weight management and healthy living. Its products and programs are marketed primarily under the OPTAVIA brand. OPTAVIA offers structured plans that combine portion-controlled meal replacements and other nutrition products with guidance from independent coaches. The company’s approach emphasizes nutrition, behavior changes and ongoing support. Founded in 1980, Medifast serves customers primarily in the United States. Its business centers on selling products and connecting customers with coaches who provide support as they follow the company’s programs.