Fintel reports that on July 31, 2023, DA Davidson maintained coverage of Medifast (NYSE:MED) with a Neutral recommendation.
Analyst Price Forecast Suggests 24.92% Downside
As of July 6, 2023, the average one-year price target for Medifast is 76.50. The forecasts range from a low of 75.75 to a high of $78.75. The average price target represents a decrease of 24.92% from its latest reported closing price of 101.89.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Medifast is 1,617MM, an increase of 5.69%. The projected annual non-GAAP EPS is 13.39.
Medifast Declares $1.65 Dividend
On June 15, 2023 the company declared a regular quarterly dividend of $1.65 per share ($6.60 annualized). Shareholders of record as of June 27, 2023 will receive the payment on August 8, 2023. Previously, the company paid $1.65 per share.
At the current share price of $101.89 / share, the stock's dividend yield is 6.48%.
Looking back five years and taking a sample every week, the average dividend yield has been 3.51%, the lowest has been 0.79%, and the highest has been 8.27%. The standard deviation of yields is 1.78 (n=235).
The current dividend yield is 1.66 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.50. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.46%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 576 funds or institutions reporting positions in Medifast. This is an increase of 8 owner(s) or 1.41% in the last quarter. Average portfolio weight of all funds dedicated to MED is 0.13%, an increase of 8.99%. Total shares owned by institutions increased in the last three months by 8.98% to 11,417K shares. 
The put/call ratio of MED is 2.87, indicating a bearish outlook.
What are Other Shareholders Doing?
IJR - iShares Core S&P Small-Cap ETF holds 797K shares representing 7.39% ownership of the company. In it's prior filing, the firm reported owning 810K shares, representing a decrease of 1.62%. The firm decreased its portfolio allocation in MED by 14.07% over the last quarter.
Renaissance Technologies holds 651K shares representing 6.04% ownership of the company. In it's prior filing, the firm reported owning 632K shares, representing an increase of 2.90%. The firm decreased its portfolio allocation in MED by 10.22% over the last quarter.
Millennium Management holds 399K shares representing 3.70% ownership of the company. In it's prior filing, the firm reported owning 34K shares, representing an increase of 91.45%. The firm increased its portfolio allocation in MED by 990.05% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 338K shares representing 3.13% ownership of the company. In it's prior filing, the firm reported owning 331K shares, representing an increase of 1.89%. The firm decreased its portfolio allocation in MED by 15.42% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 284K shares representing 2.64% ownership of the company. In it's prior filing, the firm reported owning 282K shares, representing an increase of 1.04%. The firm decreased its portfolio allocation in MED by 12.83% over the last quarter.
Medifast Background Information
(This description is provided by the company.)
Medifast is the global company behind one of the fastest-growing health and wellness communities, OPTAVIA®, which offers scientifically developed products, clinically proven plans and the support of Coaches and a Community to help Clients achieve Lifelong Transformation, One Healthy Habit at a Time®. Based on nearly 40 years of experience, Medifast has redefined direct selling by combining the best aspects of the model. Its community of thousands of independent OPTAVIA Coaches teach Clients how to develop holistic healthy habits through the proprietary Habits of Health® Transformational System. Medifast is ranked second on FORTUNE's 100 Fastest-Growing Companies list in 2020. The company was also named to Forbes' 100 Most Trustworthy Companies in America list in 2017.
Additional reading:
- Medifast Announces Quarterly Dividend
- Medifast Enhances “Fuel for the Future” Program to Position the Business for Long-term Sustainable Growth Optimizations aimed at freeing up capital to invest in growth initiatives expected to triple the company’s addressable market
- Medifast Announces First Quarter 2023 Financial Results
- Medifast Announces Quarterly Dividend
- Medifast Announces Fourth Quarter and Full Year 2022 Financial Results Full year revenue increases; active earning Coaches increase in Q4 as customer retention rates further stabilize
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
