Blue Buffalo Pet Products, Inc. (BUFF) Stock | Drop & Pop After Q3 Financial Results


Blue Buffalo Pet Products, Inc. (NASDAQ: BUFF)


Blue Buffalo Pet Products, Inc. (BUFF), a pet food company on Thursday announced positive third quarter 2015 financial results. Net Sales was $259 million up 10.5% from third quarter 2104. Adjusted EBITDA was $61 million up 15.6% from third quarter 2014.


Blue Buffalo Pet Products, Inc. CEO Comments

“I am pleased to report our third quarter results. Blue Buffalo delivered strong performance in the third quarter. We gained market share, expanded into new markets, improved our margins and continued to invest for the future. As a result of our strong performance, we are raising our full year EPS guidance,” said CEO Kurt Schmidt.  Globe Newswire


BUFF Technical Analysis


BUFF gapped up in price on Friday to $18.83, up from the prior day’s close of $17.10, which is a 10% increase on the favorable news. Taking a look at the daily chart, we can see the last time BUFF traded above this price level was on October 23rd, when it closed at $19.14. Taking a further look back on the chart, we can see that BUFF has been in a decline dating back to August 4th when it traded at its 52 week high of $28.80.  The next possible resistance level for BUFF would be $19.75 which it reached in the middle of October. BUFF has a float of 77.28 million shares and was trading almost 4 times the normal daily trading volume. BUFF did reach pre market highs of $18.86, and only gave back $0.03 at the open. For trading purposes, my entry point would have been $18.86 looking for a run through $19. My stop loss would have been $18.75, fearing anything below that and the stock would start to fill in the gap up.


Company Profile

Blue Buffalo Pet Products, Inc. is a pet food company in the United States, selling dog and cat food made with whole meats, fruits and vegetables, and other natural ingredients. The Company has built four product lines under its BLUE brand. The Company develops, produces, markets and sells pet food under its product lines: BLUE Life Protection Formula, BLUE Wilderness, BLUE Basics and BLUE Freedom. Each line of pet food includes different product types for dogs and cats, such as dry food, wet food and treats. The Company also produces and sells cat litter products under the BLUE Naturally Fresh line. The Company sells its products in the specialty channels, either directly to retailers or through distributors. The specialty channels include national pet superstore chains, regional pet store chains, neighborhood pet stores, veterinary clinics, farm and feed stores, e-commerce retailers, military outlets and hardware stores. BLUE is sold across all types of specialty retailers in the United States and Canada. The Company’s products are manufactured in the United States through a network of owned and contracted manufacturing facilities and distributed from owned and contracted distribution centers. The Company segments pet foods into Wholesome Natural, Engineered, Private Label and Therapeutic market segments. The Company conducts its business through its wholly owned subsidiary, Blue Buffalo Company, Ltd. The Company competes with Nestle, Mars, J.M. Smucker and Colgate-Palmolive.  Reuters