Amazon takes 4.1% stake in Vital Farms VITL 🥚
Benzinga reporting today Amazon has 4.1% stake in Vital Farms VITL. 🍳 Great strategy for Whole Foods.
Maybe a possible acquisition target down the road? Also Amazon’s logistics efficiencies could play a very positive role on increasing scale.
VITL is one of my top value plays for 2021. I also like it for its green/social/ethical focus. It popped out the gate as an IPO back in August and slowly dwindled since hitting a 52 week low recently. At $26 it’s well below it average price target of $37.
Many investors are sniffing for value right now with so many stocks looking frothy. I feel VITL will see a rally within a month or so because of that.
Baron Discovery Fund published its Q4 2020 report in December and continues to be very bullish on the stock. In Q3 2020, a total of 11 of the hedge funds tracked by Insider Monkey were long on this stock, a change of 11 from the previous quarter so a number of other hedge fund managers believe in VITL's growth potential.
As the vaccine rollout continues and restaurants, hotels, destination attractions, and conference centers kick back into gear I believe egg demand will pick up too.
Vital Farms (VITL) fits the mold of the new consumer. The company is part of a growing movement to disrupt the food industry with more sustainable options. It also prides itself on transparency within the food supply chain and being healthier and more sustainable.
I am long VITL. I am not a financial advisor.