Champlain Exits Entire Position in Freshpet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9 hours ago
0mins
Should l Buy FRPT?
Source: Fool
- Position Change: Champlain Investment Partners sold 1,776,396 shares of Freshpet in Q1 2026, with an estimated transaction value of $124.82 million, reducing its stake from 1.1% to zero, indicating a significant loss of confidence in the stock.
- Market Value Decline: The quarter-end value of Freshpet's stake decreased by $108.24 million due to the sale and price movements, reflecting a 36.2% drop in stock price over the past year, underperforming the S&P 500 by 64 percentage points.
- Financial Performance: Freshpet reported a trailing twelve-month revenue of $1.14 billion and a net income of $200.34 million, with a market capitalization of $2.39 billion, indicating that the growth seen during the pandemic has not been sustained, leading to declining investor confidence.
- Market Outlook: Despite Champlain's exit, Freshpet's current valuation at 13 times EBITDA and its profitability over the last two years suggest operational improvements; if the company can maintain its vertically integrated model, it may yield significant returns in the future.
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Analyst Views on FRPT
Wall Street analysts forecast FRPT stock price to rise
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 49.340
Low
61.00
Averages
71.67
High
87.00
Current: 49.340
Low
61.00
Averages
71.67
High
87.00
About FRPT
Freshpet, Inc. is focused on the development, manufacturing, marketing, and distribution of pet food products. The Company's products consist of dog food, cat food and dog treats. The Company's products are made according to its nutritional philosophy of fresh, meat-based nutrition and minimal processing. Its proprietary recipes include real, fresh meat and varying combinations of vitamin-rich vegetables, leafy greens, and antioxidant-rich fruits, without the use of preservatives or additives. Its products are sold under the Freshpet brand name. The Company sells its products through a network of Company-owned branded refrigerators, Freshpet Fridges. The Company sells its products throughout the United States, Canada, and Europe. It sells its products through various classes of retail: grocery, mass, international, digital, pet specialty, and club. The Company also offer fresh treats across all classes of retail under the Dognation and Dog Joy labels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Champlain Exits Entire Position in Freshpet
- Position Change: Champlain Investment Partners sold 1,776,396 shares of Freshpet in Q1 2026, with an estimated transaction value of $124.82 million, reducing its stake from 1.1% to zero, indicating a significant loss of confidence in the stock.
- Market Value Decline: The quarter-end value of Freshpet's stake decreased by $108.24 million due to the sale and price movements, reflecting a 36.2% drop in stock price over the past year, underperforming the S&P 500 by 64 percentage points.
- Financial Performance: Freshpet reported a trailing twelve-month revenue of $1.14 billion and a net income of $200.34 million, with a market capitalization of $2.39 billion, indicating that the growth seen during the pandemic has not been sustained, leading to declining investor confidence.
- Market Outlook: Despite Champlain's exit, Freshpet's current valuation at 13 times EBITDA and its profitability over the last two years suggest operational improvements; if the company can maintain its vertically integrated model, it may yield significant returns in the future.
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- Market Overreaction: Despite the stock market's sharp reaction, with MGP Ingredients and Freshpet falling 4.8% and 5.5% respectively, this may present buying opportunities for investors looking for quality stocks.
- Freshpet Financial Performance: Freshpet reported a 14% year-over-year increase in net sales for Q3, reaching $288.8 million, exceeding analyst expectations and demonstrating strong market demand and profitability.
- Stock Price Volatility: Freshpet has declined 16.3% year-to-date, currently trading at $50.34, which is 43.8% below its 52-week high of $89.64, reflecting market caution regarding its future performance.
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Freshpet FRPT Q1 2026 Earnings Call Transcript
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Latest Wall Street Ratings and Outlook
- Goldman Sachs Reiterates Nvidia Buy: Goldman Sachs anticipates a 'beat and raise' quarter for Nvidia ahead of its earnings report this month, focusing on the potential upside to its $1 trillion datacenter guidance, which could positively impact stock performance.
- JPMorgan Upgrades Freshpet: JPMorgan upgraded Freshpet from hold to buy following a first-quarter sales beat and guidance increase, expecting a rebound in share price as investors buy the dip after a 9% decline.
- Barclays Reiterates Microsoft Overweight: Barclays noted that Microsoft's story remains strong post-investor meetings, emphasizing management's focus on efficiency gains that are likely to enhance Azure growth and competitive positioning.
- Jefferies Upgrades Agilon Health: Jefferies highlighted improving visibility for Agilon Health, with supportive Medicare Advantage rates locked in, suggesting a favorable outlook that could attract investor interest moving forward.
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Freshpet Q1 Earnings Exceed Expectations
- Significant Profitability Improvement: Freshpet reported a Q1 GAAP EPS of $0.91, beating expectations by $0.82, indicating a substantial enhancement in the company's profitability and reflecting its strengthened competitive position in the market.
- Strong Revenue Growth: The company achieved revenue of $297.6 million in Q1, representing a 13.1% year-over-year increase and exceeding market expectations by $6.07 million, demonstrating sustained growth momentum in the pet food sector.
- Margin Improvement: Freshpet's gross margin improved to 40.5% from 39.4% in the prior year, with an adjusted gross margin of 46.9%, up from 45.7%, showcasing effective cost control and pricing strategies.
- Net Income Turnaround: The company reported a net income of $48.5 million in Q1, a significant turnaround from a net loss of $12.7 million in the same period last year, enhancing investor confidence in its future growth prospects.
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Freshpet Set to Announce Q1 Earnings on May 6th
- Earnings Announcement: Freshpet (FRPT) is set to release its Q1 2023 earnings on May 6th before market open, with consensus EPS estimate at $0.09 and revenue estimate at $291.53 million, reflecting a 10.8% year-over-year growth potential in the pet food market.
- Historical Performance Review: Over the past year, Freshpet has exceeded EPS estimates 75% of the time and revenue estimates 50% of the time, indicating a strong track record of financial performance and market resilience.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen no upward revisions and two downward revisions, while revenue estimates experienced seven upward revisions with none downward, suggesting increased market confidence in Freshpet's future revenue growth.
- Market Competition Analysis: Despite competition from Costco's Kirkland brand and The Farmer's Dog, analysts at Cowen believe Freshpet's competitive moat remains intact, indicating the brand's strong positioning in the pet food industry.
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Champlain Exits Entire Position in Freshpet
- Position Change: Champlain Investment Partners sold 1,776,396 shares of Freshpet in Q1 2026, with an estimated transaction value of $124.82 million, reducing its stake from 1.1% to zero, indicating a significant loss of confidence in the stock.
- Market Value Decline: The quarter-end value of Freshpet's stake decreased by $108.24 million due to the sale and price movements, reflecting a 36.2% drop in stock price over the past year, underperforming the S&P 500 by 64 percentage points.
- Financial Performance: Freshpet reported a trailing twelve-month revenue of $1.14 billion and a net income of $200.34 million, with a market capitalization of $2.39 billion, indicating that the growth seen during the pandemic has not been sustained, leading to declining investor confidence.
- Market Outlook: Despite Champlain's exit, Freshpet's current valuation at 13 times EBITDA and its profitability over the last two years suggest operational improvements; if the company can maintain its vertically integrated model, it may yield significant returns in the future.
See More
Iran Peace Talks Collapse Impact Food Stocks
- Cost Pressure: The collapse of Iran peace talks has led to increased raw material costs for food companies, with Kraft Heinz expecting a 4% rise in input costs this year, directly impacting its profit margins.
- Market Overreaction: Despite the stock market's sharp reaction, with MGP Ingredients and Freshpet falling 4.8% and 5.5% respectively, this may present buying opportunities for investors looking for quality stocks.
- Freshpet Financial Performance: Freshpet reported a 14% year-over-year increase in net sales for Q3, reaching $288.8 million, exceeding analyst expectations and demonstrating strong market demand and profitability.
- Stock Price Volatility: Freshpet has declined 16.3% year-to-date, currently trading at $50.34, which is 43.8% below its 52-week high of $89.64, reflecting market caution regarding its future performance.
See More
Freshpet FRPT Q1 2026 Earnings Call Transcript
See More
Latest Wall Street Ratings and Outlook
- Goldman Sachs Reiterates Nvidia Buy: Goldman Sachs anticipates a 'beat and raise' quarter for Nvidia ahead of its earnings report this month, focusing on the potential upside to its $1 trillion datacenter guidance, which could positively impact stock performance.
- JPMorgan Upgrades Freshpet: JPMorgan upgraded Freshpet from hold to buy following a first-quarter sales beat and guidance increase, expecting a rebound in share price as investors buy the dip after a 9% decline.
- Barclays Reiterates Microsoft Overweight: Barclays noted that Microsoft's story remains strong post-investor meetings, emphasizing management's focus on efficiency gains that are likely to enhance Azure growth and competitive positioning.
- Jefferies Upgrades Agilon Health: Jefferies highlighted improving visibility for Agilon Health, with supportive Medicare Advantage rates locked in, suggesting a favorable outlook that could attract investor interest moving forward.
See More
Freshpet Q1 Earnings Exceed Expectations
- Significant Profitability Improvement: Freshpet reported a Q1 GAAP EPS of $0.91, beating expectations by $0.82, indicating a substantial enhancement in the company's profitability and reflecting its strengthened competitive position in the market.
- Strong Revenue Growth: The company achieved revenue of $297.6 million in Q1, representing a 13.1% year-over-year increase and exceeding market expectations by $6.07 million, demonstrating sustained growth momentum in the pet food sector.
- Margin Improvement: Freshpet's gross margin improved to 40.5% from 39.4% in the prior year, with an adjusted gross margin of 46.9%, up from 45.7%, showcasing effective cost control and pricing strategies.
- Net Income Turnaround: The company reported a net income of $48.5 million in Q1, a significant turnaround from a net loss of $12.7 million in the same period last year, enhancing investor confidence in its future growth prospects.
See More
Freshpet Set to Announce Q1 Earnings on May 6th
- Earnings Announcement: Freshpet (FRPT) is set to release its Q1 2023 earnings on May 6th before market open, with consensus EPS estimate at $0.09 and revenue estimate at $291.53 million, reflecting a 10.8% year-over-year growth potential in the pet food market.
- Historical Performance Review: Over the past year, Freshpet has exceeded EPS estimates 75% of the time and revenue estimates 50% of the time, indicating a strong track record of financial performance and market resilience.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen no upward revisions and two downward revisions, while revenue estimates experienced seven upward revisions with none downward, suggesting increased market confidence in Freshpet's future revenue growth.
- Market Competition Analysis: Despite competition from Costco's Kirkland brand and The Farmer's Dog, analysts at Cowen believe Freshpet's competitive moat remains intact, indicating the brand's strong positioning in the pet food industry.
See More
