Trupanion (NASDAQ:TRUP) shares are up in double digits today after the company received rate increases in New York and California. The company provides medical insurance for cats and dogs across major geographies.
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With a 12% rate hike in California, Trupanion has now bagged about a 21% rate increase in the past seven months. Further, with an 18% increase in New York, the total rate increase for the company now stands at 25% during the same period.
Importantly, the company now expects a 19.7% price action by the end of August and a 21.6% pricing action by the end of September. Margi Tooth, the President of the company noted, “We believe the rising cost of veterinary care will only increase the need for Trupanion in the months and years ahead and we look forward to being there for our members and their pets.”
Additionally, Trupanion is undertaking cost reductions and driving operational efficiencies as it aims to achieve positive free cash flow in the fourth quarter of this year.
Overall, the Street has a $42.43 consensus price target on Trupanion alongside a Moderate Buy consensus rating. Shares of the company have tanked nearly 63% over the past year while short interest in the stock still remains elevated at about 35%.
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