Stock Traders Buy High Volume of Put Options on Medifast (NYSE:MED)

Medifast Inc (NYSE:MED) saw unusually large options trading activity on Thursday. Stock traders bought 1,786 put options on the company. This is an increase of 876% compared to the average daily volume of 183 put options.

Institutional investors have recently made changes to their positions in the stock. Sandy Spring Bank acquired a new stake in shares of Medifast during the 2nd quarter worth about $26,000. Financial Gravity Wealth Inc. increased its position in shares of Medifast by 853.8% during the 2nd quarter. Financial Gravity Wealth Inc. now owns 248 shares of the specialty retailer’s stock worth $32,000 after purchasing an additional 222 shares in the last quarter. Advisors Preferred LLC acquired a new stake in shares of Medifast during the 2nd quarter worth about $49,000. Anderson Fisher LLC acquired a new stake in shares of Medifast during the 2nd quarter worth about $80,000. Finally, Systematic Financial Management LP acquired a new stake in shares of Medifast during the 2nd quarter worth about $94,000. Institutional investors and hedge funds own 97.38% of the company’s stock.

Shares of NYSE:MED traded up $1.03 during midday trading on Friday, reaching $106.05. 565,925 shares of the company’s stock were exchanged, compared to its average volume of 276,788. The company’s 50 day simple moving average is $104.27 and its two-hundred day simple moving average is $126.10. The firm has a market capitalization of $1.21 billion, a PE ratio of 22.95 and a beta of 0.70. Medifast has a 12 month low of $96.40 and a 12 month high of $253.90.



Medifast (NYSE:MED) last released its quarterly earnings data on Thursday, August 1st. The specialty retailer reported $1.75 EPS for the quarter, topping analysts’ consensus estimates of $1.71 by $0.04. The company had revenue of $187.10 million during the quarter, compared to the consensus estimate of $181.74 million. Medifast had a net margin of 11.22% and a return on equity of 61.06%. The firm’s revenue for the quarter was up 59.5% compared to the same quarter last year. During the same period last year, the firm earned $1.16 EPS. As a group, equities research analysts expect that Medifast will post 6.86 EPS for the current year.

A number of equities analysts have recently commented on the stock. ValuEngine downgraded shares of Medifast from a “hold” rating to a “sell” rating in a report on Tuesday, July 9th. Zacks Investment Research raised shares of Medifast from a “hold” rating to a “buy” rating and set a $116.00 price objective for the company in a report on Tuesday, August 6th. Finally, Jefferies Financial Group assumed coverage on shares of Medifast in a report on Thursday, July 25th. They set a “buy” rating and a $130.00 price objective for the company.

About Medifast

Medifast, Inc, through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products. It offers bars, bites, pretzels, puffs, oatmeal and cereal crunch products, drinks, hearty choices, pancakes, puddings, soft serves, shakes, smoothies, soft bakes, and soups under the Medifast, OPTAVIA, Thrive by Medifast, Optimal Health by OPTAVIA, Flavors of Home, and Essential 1 brands.

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