Current Analysis: Medifast

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Medifast Inc (MED) is a United states based company that produces, distributes and sells products concerning weight loss, weight management, and healthy living.

The company generates its revenue from point of sale transactions executed over an e-commerce platform for weight loss, weight management, and other consumable health and nutritional products.

The company offers it products under the OPTAVIA, Optimal Health by Take Shape for Life, and Flavors of Home brands.

The company was founded in 1980 and is based in Baltimore, Maryland.

Three key data points gauge

Medifast Inc or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

MED Price

Over the past year, Medifast share price fell about 65% from $115.31 to $40.38 as of Wednesday’s market close.

If Medifast trades in the range of $30 to $60 this next year, its recent $40.38 share price might rise to $47.00 by next year. Of course, Medifasts price could drop about the same $6.62 estimated amount, or more.

My annual upside estimate of $6.62 however, is $2 under the median of one-year target prices set for MED by 2 analysts tracking the stock.

MED Dividend

Medifast has paid variable quarterly dividends since February, 2016. MED’s most recent Q dividend of $1.65 was declared September 7th to shareholders of record September 18th. The payout was made on November 7th.

A forward-looking $5 annual dividend yields 12.4% at Wednesday’s $40.38 share price.

MED Returns

To put it all together, add MED’s estimated annual dividend of $5 to the estimated price upside of $6.62 to find a $11.62 gross gain.

At Wednesday’s $40.38 share price, a little over $1000 would buy 25 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us $0.40 per share.

Subtracting that likely $0.40 brokerage cost from the $11.62 gross gain produces a net gain of $11.22 X 25 shares = $280.50 for a 27.75% estimated net gain.

You might choose to pounce on Medifast Inc It is a 44-year-old dividend-paying Maryland-based personal products company.  Furthermore, the estimated $123.80 of annual dividend income from $1k invested is over 3 times greater than MED’s recent $40.38 single share price.

The exact track of Medifast Inc.’s ongoing future price and dividend will be determined by market action.

 

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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