Trupanion Inc (TRUP) shares have been dropping 40% from 52-week highs. The company’s share price is currently at $ 78.02. Despite the favorable market situation and exceptional growth opportunities, several negative aspects affect the company’s business.
About 180 million pet owners in the U.S. and Canada, where the Trupanion insurance company provides coverage for veterinary care. Although there are fewer insured pets, this number remains at less than 2%. This provides Trupanion with ample opportunity to expand its sales. In some European countries, the penetration rate of pet insurance is higher than 20%, sometimes even exceeding 40%.
During last year’s comparison, Trupanion averaged $60.37 per pet. However, after compensations and returns were made to veterinarians, the profit was $7.83 per pet per month. Furthermore, Trupanion has a customer retention rate of around 98 %, as the average pet stays insured for 77.5 months. This is a positive number for an expanding company. Growing competition may pose a threat to Trupanion. More and more insurance companies are offering pet insurance policies as a result of the increase in households with pets, in addition to the rising cost of veterinary services. Companies like Lemonade, Zoetis, and Pumpkin are offering to cover veterinary costs.
Due to increased competition, Trupanion may need to invest in more marketing, thereby negatively impacting profits. This company recently reported a net loss of $12.4 million in its most recent report.
In addition, Trupanion will have to confront many challenges in the coming quarters. In the end, success will come from the company’s ability to persuade customers of the advantages of its insurance services.
Trupanion Inc. (TRUP) trades about 412.79K shares a day on average but traded 0.2 million shares on Monday. The company has a market cap of $2.98 billion and an enterprise value of about 2.90B. Today’s close is trading at $77.30, a decrease of -0.92% from last Friday’s close of $78.02. During the past 52 weeks, this stock has reached a high of $126.53, while it reached its lowest price level of $25.39. Since the beginning of the year, the stock has seen a high of $79.01 and a low of $75.24.