Vital Farms (NASDAQ:VITL) Downgraded to “Strong Sell” Rating by Zacks Research

Zacks Research downgraded shares of Vital Farms (NASDAQ:VITL) from a hold rating to a strong sell rating in a report published on Monday morning,Zacks.com reports.

A number of other research analysts also recently issued reports on the company. DA Davidson set a $47.00 price objective on Vital Farms and gave the company a “buy” rating in a research note on Wednesday, December 17th. Telsey Advisory Group dropped their price target on shares of Vital Farms from $50.00 to $35.00 and set an “outperform” rating for the company in a research report on Friday, February 27th. Jefferies Financial Group restated a “buy” rating and set a $52.00 price objective on shares of Vital Farms in a research report on Wednesday, December 17th. BMO Capital Markets dropped their target price on shares of Vital Farms from $60.00 to $50.00 and set an “outperform” rating for the company in a report on Thursday, December 18th. Finally, TD Cowen reissued a “buy” rating on shares of Vital Farms in a report on Tuesday, January 20th. Nine investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Vital Farms has an average rating of “Moderate Buy” and an average target price of $45.00.

Vital Farms Trading Up 0.9%

Shares of VITL stock opened at $20.30 on Monday. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.16 and a quick ratio of 1.61. The company has a market cap of $909.44 million, a price-to-earnings ratio of 14.10 and a beta of 1.14. Vital Farms has a 1 year low of $19.75 and a 1 year high of $53.13. The firm has a fifty day moving average price of $28.10 and a 200-day moving average price of $35.59.

Vital Farms (NASDAQ:VITL) last announced its earnings results on Thursday, February 26th. The company reported $0.35 EPS for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.03). Vital Farms had a return on equity of 20.69% and a net margin of 8.73%.The company had revenue of $213.55 million during the quarter, compared to the consensus estimate of $212.83 million. During the same period in the prior year, the business posted $0.23 earnings per share. Vital Farms’s revenue for the quarter was up 28.6% compared to the same quarter last year. As a group, equities analysts predict that Vital Farms will post 1.11 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Matthew Ohayer sold 20,000 shares of Vital Farms stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $27.91, for a total value of $558,200.00. Following the sale, the insider directly owned 6,341,190 shares of the company’s stock, valued at approximately $176,982,612.90. The trade was a 0.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Russell Diez-Canseco sold 16,734 shares of the business’s stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $35.05, for a total value of $586,526.70. Following the completion of the sale, the chief executive officer owned 649,684 shares in the company, valued at $22,771,424.20. This represents a 2.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 66,734 shares of company stock worth $2,092,227. 21.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Vital Farms

Several institutional investors have recently added to or reduced their stakes in VITL. Principal Financial Group Inc. grew its stake in shares of Vital Farms by 23.1% in the 3rd quarter. Principal Financial Group Inc. now owns 1,377,681 shares of the company’s stock worth $56,692,000 after buying an additional 258,092 shares in the last quarter. Hussman Strategic Advisors Inc. purchased a new stake in shares of Vital Farms during the 3rd quarter valued at about $1,728,000. Geode Capital Management LLC lifted its holdings in shares of Vital Farms by 2.4% in the 2nd quarter. Geode Capital Management LLC now owns 807,003 shares of the company’s stock valued at $31,089,000 after acquiring an additional 18,682 shares during the last quarter. E. Ohman J or Asset Management AB purchased a new position in Vital Farms in the third quarter worth about $1,903,000. Finally, Quantbot Technologies LP purchased a new position in Vital Farms in the second quarter worth about $4,571,000. Hedge funds and other institutional investors own 98.59% of the company’s stock.

Key Stories Impacting Vital Farms

Here are the key news stories impacting Vital Farms this week:

• Positive Sentiment: Needham cut its price target from $45 to $35 but maintained a Buy rating, highlighting substantial upside from current levels and signaling continued conviction from that shop. Needham Lowers PT to $35
• Positive Sentiment: Mizuho lowered its target from $48 to $40 but kept an Outperform rating, implying they still see long-term upside despite cutting near-term assumptions. Mizuho Lowers PT to $40
• Positive Sentiment: Several outlets report a consensus analyst view of a “Moderate Buy,” which may support buying interest from investors who focus on the street’s average stance rather than individual downgrades. Analyst Consensus: Moderate Buy
• Neutral Sentiment: Morgan Stanley reiterated an Equal Weight rating, reflecting a neutral view that could temper volatility from more bullish or bearish shops. Morgan Stanley Equal Weight
• Neutral Sentiment: Market commentary is exploring whether the share-price slump creates a buying opportunity after recent weakness; such think-pieces can bring opportunistic buyers but don’t change fundamentals. Has VITL Become More Attractive?
• Negative Sentiment: Benchmark downgraded Vital Farms to Hold from Buy and removed its price target, citing a “volatile” Q1 outlook and tempered FY26 revenue growth — a direct reason for near‑term investor caution. Benchmark Downgrade to Hold
• Negative Sentiment: Rosen Law Firm announced an investigation into potential securities claims alleging Vital Farms may have issued materially misleading information; class‑action inquiries can increase downside risk (legal costs, distraction, sentiment hit). Rosen Law Firm PR Newswire GlobeNewswire

About Vital Farms

Vital Farms, traded on the NASDAQ under the symbol VITL, is a U.S.-based food company specializing in pasture-raised egg and dairy products. The company partners with a network of family farms across the United States to produce eggs, butter and related items under a certified humane, pasture-centric farming model. Vital Farms’ supply chain emphasizes animal welfare, environmental stewardship and transparent sourcing, appealing to consumers seeking ethically produced, high-quality ingredients.

Founded in 2007 and headquartered in Austin, Texas, Vital Farms began by marketing pasture-raised eggs to health- and ethically minded shoppers.