Piper Sandler downgraded Trupanion Inc. to Neutral from Above Average on Wednesday, citing a double threat from macroeconomic headwinds and structural pressures in the U.S. pet insurance market.
The brokerage reduced its price target to $32 from $45, while Trupanion’s shares were last quoted at $31.84, up 0.25% in early trading. The stock has fallen 32% over the past year.
Piper Sandler highlighted a contraction in the puppy vet-visit funnel, which has weakened new-pet acquisition, alongside an aging cohort of policyholders acquired during the COVID-19 pandemic. The latter group now requires increasingly costly care, straining Trupanion’s ability to balance premium growth, member retention, and new-pet enrollment amid a constrained consumer backdrop.
Trupanion reported second-quarter 2026 revenue of $392.9 million, an 11% year-over-year increase, and adjusted earnings per share of $0.16, beating expectations. Its gross profit margin stood at 22.6%.
Separately, Stifel raised its price target for Trupanion to $29 from $28 but maintained a Hold rating. The adjustment follows Trupanion’s decision to terminate its partnership with Pets Best in the third quarter of 2028, a move expected to reduce enrollments as Pets Best transitions off Trupanion’s platform.
