Vital Farms (NASDAQ:VITL) Rating Lowered to Strong Sell at Zacks Research

Vital Farms (NASDAQ:VITL) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Monday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the company. BMO Capital Markets decreased their price target on Vital Farms from $60.00 to $50.00 and set an “outperform” rating on the stock in a report on Thursday, December 18th. DA Davidson set a $47.00 target price on shares of Vital Farms and gave the company a “buy” rating in a research note on Wednesday, December 17th. Jefferies Financial Group reiterated a “buy” rating and set a $52.00 price target on shares of Vital Farms in a research report on Wednesday, December 17th. Morgan Stanley restated an “equal weight” rating and issued a $24.00 price objective (down from $45.00) on shares of Vital Farms in a report on Friday, February 27th. Finally, Telsey Advisory Group lowered their target price on shares of Vital Farms from $50.00 to $35.00 and set an “outperform” rating for the company in a report on Friday, February 27th. Nine investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $45.00.

Vital Farms Price Performance

VITL 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 stock has a market capitalization of $909.44 million, a P/E ratio of 14.10 and a beta of 1.14. The company’s 50 day simple moving average is $28.10 and its 200-day simple moving average is $35.59. Vital Farms has a one year low of $19.75 and a one year high of $53.13.

Vital Farms (NASDAQ:VITL) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.03). The company had revenue of $213.55 million during the quarter, compared to the consensus estimate of $212.83 million. Vital Farms had a return on equity of 20.69% and a net margin of 8.73%.The business’s revenue for the quarter was up 28.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.23 EPS. Sell-side analysts anticipate that Vital Farms will post 1.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Vital Farms news, CEO Russell Diez-Canseco sold 16,734 shares of the company’s stock in a transaction that occurred on Monday, December 15th. The shares were 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 of the company’s stock, valued at approximately $22,771,424.20. This represents a 2.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Matthew Ohayer sold 25,000 shares of Vital Farms stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $30.85, for a total transaction of $771,250.00. Following the transaction, the insider directly owned 6,361,190 shares in the company, valued at approximately $196,242,711.50. This represents a 0.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 66,734 shares of company stock valued at $2,092,227. Corporate insiders own 21.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VITL. Principal Financial Group Inc. raised its holdings in Vital Farms by 23.1% during 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 during the period. Hussman Strategic Advisors Inc. acquired a new position in shares of Vital Farms in the third quarter valued at approximately $1,728,000. Geode Capital Management LLC increased its position in shares of Vital Farms by 2.4% during the second quarter. Geode Capital Management LLC now owns 807,003 shares of the company’s stock worth $31,089,000 after acquiring an additional 18,682 shares in the last quarter. E. Ohman J or Asset Management AB acquired a new stake in shares of Vital Farms during the third quarter worth $1,903,000. Finally, Quantbot Technologies LP bought a new stake in Vital Farms in the 2nd quarter valued at $4,571,000. 98.59% of the stock is owned by institutional investors and hedge funds.

More Vital Farms News

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

Vital Farms Company Profile

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.