Trupanion Inc. shares fell 6.4% in early trading on Friday after Piper Sandler downgraded the pet insurance provider to Neutral from Overweight and slashed its price target by nearly 29%.
The brokerage reduced its target to $32 from $45, citing concerns over a shrinking U.S. puppy vet visit funnel, an aging COVID-era pet cohort driving larger claims, and a challenging consumer macroeconomic environment that limits the company’s ability to implement premium increases to offset rising veterinary costs. Zacks Research separately downgraded the stock to Hold from Strong Buy on the same day, while Stifel Nicolaus maintained its Hold rating but raised its price target marginally to $29.
The stock was trading at $29.81, near Stifel’s new target and below Piper Sandler’s reduced $32 level. Trupanion’s shares have traded between a 52-week high of $46.98 and a low of $21.16.
The decline erased recent gains tied to an August earnings beat and a $100 million share buyback announcement. The broader market showed little movement, with the S&P 500 up 0.1%, the Dow Jones flat, and the Nasdaq gaining 0.1%.
