Champlain Investment Partners, LLC, has completely divested its position in Freshpet (FRPT), selling 1,776,396 shares valued at approximately $124.82 million during Q1 2026. This move eliminates Freshpet from Champlain’s portfolio, which previously accounted for 1.1% of its assets under management. The stock has struggled, down 36.2% year-over-year and significantly underperforming the S&P 500.
The sale underscores Freshpet’s ongoing challenges despite its potential. Once trading above $150, the stock now hovers around $49, reflecting a dramatic decline in valuation. Freshpet currently trades at 13 times EBITDA, a significant drop from its pandemic highs, yet it has achieved profitability for two consecutive years and reached breakeven on free cash flow. This could indicate a turning point if the company can maintain its operational improvements.
For market professionals, Champlain’s exit raises questions about Freshpet’s future trajectory. While the stock may appear undervalued, its operational model and margin improvement will be critical indicators for potential investors to monitor.
Source: fool.com