AUSTIN, TX—Matthew Ohayer, the Executive Chairperson of Vital Farms, Inc. (NASDAQ:VITL), recently executed a sale of company stock, as per a filing with the Securities and Exchange Commission. The transaction, which took place on October 21, involved the sale of 24,000 shares of common stock, with a total value of $938,133. The shares were sold at prices ranging from $39.02 to $39.89.
Following these transactions, Ohayer retains direct ownership of 7,194,777 shares in the company. Additionally, 1,742,000 shares are indirectly held by his former spouse, over which Ohayer maintains sole voting control but no pecuniary interest.
These sales were conducted under a pre-established Rule 10b5-1 trading plan, adopted by Ohayer earlier this year on June 7.
In other recent news, Vital Farms has reported a record net revenue of $147.4 million in Q2 2024, marking a 38.5% increase year over year. Despite an increase in SG&A expenses to $33.3 million, the company's net income rose to $16.3 million, boosted by a significant volume growth of 35.8%. In recent analyst updates, Jefferies and DA Davidson have raised their price targets for Vital Farms, maintaining a Buy rating, while William Blair continues to rate the company as Outperform. Vital Farms has also announced the appointment of Joe Holland as its new Chief Supply Chain Officer, a move that aligns with the company's strategic goal of reaching $1 billion in net revenue by 2027. Other recent developments include a focus on brand marketing, aiming to reach 30 million households by 2027, and a relaunch of their butter line.
InvestingPro Insights
Matthew Ohayer's recent stock sale comes at a time when Vital Farms (NASDAQ:VITL) is experiencing significant growth and financial strength. According to InvestingPro data, the company's revenue grew by 26.61% over the last twelve months, reaching $541.56 million. This robust growth is complemented by a strong profitability profile, with a gross profit margin of 36.64% and an operating income margin of 10.27% for the same period.
InvestingPro Tips highlight that Vital Farms holds more cash than debt on its balance sheet, indicating a solid financial position. This financial stability is further underscored by the fact that the company's liquid assets exceed its short-term obligations, providing a cushion for operational flexibility.
The market has responded positively to Vital Farms' performance, with the stock showing a remarkable 261.76% price total return over the past year. Despite this significant appreciation, InvestingPro Tips suggest that the company is trading at a low P/E ratio relative to its near-term earnings growth, potentially indicating further upside potential.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Vital Farms, providing deeper insights into the company's financial health and market position.
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