SEATTLE—Travis Worra, the General Manager of Trupanion, Inc. (NASDAQ:TRUP), recently sold 2,000 shares of the company's common stock. The shares were sold at a weighted average price of $52.7243, bringing the total value of the transaction to approximately $105,448.
The sale occurred on November 4, 2024, with the shares being sold in multiple transactions at prices ranging from $52.22 to $53.28 per share. Following this transaction, Worra retains ownership of 3,757 shares in the company.
Trupanion, based in Seattle, is a provider of medical insurance for pets, operating under the standard industrial classification of hospital and medical service plans.
In other recent news, Trupanion recorded significant financial growth in its third quarter results. The pet insurance company posted a 66% increase in subscription adjusted operating income, reaching $30.8 million, and a 15% rise in total revenue to $327.5 million. Additionally, the company's total number of subscription pets grew to over 1,032,000, with average revenue per pet increasing to $74.27.
Lake Street Capital Markets has raised its price target for Trupanion to $65, maintaining a Buy rating on the stock. This decision was influenced by the company's robust revenue growth and year-over-year improvement in operating margin. The firm anticipates that Trupanion will achieve a target operating model of 15% subscription operating margins by the fourth quarter, which could lead to increased investment in pet acquisition costs and drive new subscriber growth.
Moreover, Trupanion has launched its first branded product in Europe, marking a significant strategic milestone. However, the company's other business segment's adjusted operating income dropped by 65% to $1.8 million due to lower margins. Despite this, Trupanion has raised its full-year revenue guidance to between $1.281 billion and $1.286 billion, reflecting recent developments and a positive outlook for the company's future growth.
InvestingPro Insights
Following Travis Worra's recent sale of Trupanion shares, it's worth examining some key financial metrics and insights provided by InvestingPro to better understand the company's current position.
Trupanion has demonstrated strong growth, with revenue increasing by 17.52% over the last twelve months to $1.24 billion. This aligns with an InvestingPro Tip suggesting that net income is expected to grow this year. Additionally, analysts predict the company will be profitable this year, which could be a positive sign for investors considering the recent insider sale.
However, it's important to note that Trupanion's gross profit margin stands at 20.32%, which InvestingPro identifies as a weakness. This relatively low margin could be a factor in the company's current lack of profitability over the last twelve months.
Despite these challenges, Trupanion's stock has shown remarkable performance, with a 91.47% price return over the past year and an impressive 152.14% return over the last six months. This volatility and strong recent performance are highlighted in several InvestingPro Tips, which note the stock's high returns over various timeframes and its volatile price movements.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Trupanion, providing a deeper understanding of the company's financial health and market position.
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