What Happened?

Shares of pet insurance provider Trupanion (NASDAQ: TRUP) fell 8.5% in the morning session after the company reported mixed fourth-quarter 2025 financial results, which included an earnings per share (EPS) miss. 

The company posted earnings of $0.13 per share, falling short of analysts' forecasts of $0.16. Although total revenue for the quarter grew 11.7% year-over-year to $376.9 million and was in line with expectations, investors seemed more concerned with the company's profitability. The market's reaction pushed the stock to a new 52-week low, highlighting a difficult period for the company. The earnings shortfall appeared to overshadow the positive revenue growth, leading to the significant drop in share price.

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What Is The Market Telling Us

Trupanion’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 30 days ago when the stock dropped 3.7% on the news that Cantor Fitzgerald lowered its price target on the stock. Analyst Ryan Tunis adjusted the price target downward by 16%, from $50.00 to $42.00, while maintaining a "Neutral" rating on the shares. A lower price target, even without a formal rating downgrade, often suggests that an analyst has a more cautious view of a stock's potential for growth in the near term. This adjustment reflected a less optimistic outlook on the company's future stock performance, which appeared to weigh on investor sentiment.

Trupanion is down 20.7% since the beginning of the year, and at $29.49 per share, it is trading 47.8% below its 52-week high of $56.45 from June 2025. Investors who bought $1,000 worth of Trupanion’s shares 5 years ago would now be looking at an investment worth $277.80.

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