Shares of medical insurance for cats and dogs provider Trupanion (NASDAQ:TRUP) are under pressure today on a report from the Canine Review that casts doubts over the company’s recent announcement of bagging rate increases in California and New York.
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Last week, Trupanion announced that it had received a rate increase of 18% in New York and 12% in California. Additionally, Trupanion is also expecting a 19.7% price action by the end of August and a 21.6% pricing action by the end of September.
Now, the report from the Canine Review notes that the 12% hike in California was actually lower than half of what Trupanion had requested for and cited New York regulators while stating, ”Trupanion’s statements about New York seem not to be true.” Apparently, California regulators have also sent the company an objection letter over its proposed rate hike.
Overall, the Street has a $40.43 consensus price target on Trupanion alongside a Moderate Buy consensus rating. Shares of the company have nosedived 66.1% over the past year while short interest in the stock still remains sky-high at about 35.1%.
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