Champlain Sells Out of Freshpet Position, Dumps $125 Million in Stock
Key Points
Champlain sold 1,776,396 Freshpet shares, an estimated $124.82 million trade based on quarterly average pricing.
The quarter-end position value decreased by $108.24 million, reflecting both trading activity and stock price changes.
This transaction represented 1.58% of Champlain’s 13F-reported assets under management.
After the sale, Champlain holds zero Freshpet shares, with a reported stake value of $0.
The stake was previously 1.1% of the fund’s AUM last quarter.
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What happened
According to an SEC filing dated May 13, 2026, Champlain Investment Partners, LLC, sold its entire position in Freshpet (NASDAQ:FRPT) by disposing of 1,776,396 shares during the first quarter. The estimated transaction value was $124.82 million, calculated using the quarter’s average unadjusted closing price. The quarter-end value of the stake decreased by $108.24 million, reflecting both the trade and price movement.
What else to know
Champlain’s full exit from Freshpet reduced the position from 1.1% of AUM last quarter to zero.
- Top holdings after the filing:
- Tradeweb Markets: $172.90 million (2.2% of AUM)
- Penumbra: $161.36 million (2.1% of AUM)
- EOG Resources: $153.19 million (1.9% of AUM)
- Synopsis: $152.57 million (1.9% of AUM)
- Nutanix: $152.43 million (1.9% of AUM)
As of May 14, 2026, shares were priced at $49.34, down 36.2% over one year, underperforming the S&P 500 by 64 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.14 billion |
| Net income (TTM) | $200.34 million |
| Market capitalization | $2.39 billion |
| Price (as of market close May 14, 2026) | $49.34 |
Company snapshot
Freshpet:
- Produces and markets natural fresh meals and treats for dogs and cats, primarily under the Freshpet, Dognation, and Dog Joy brands
- Generates revenue through retail distribution in grocery, mass, club, pet specialty, natural stores, and online channels
- Targets pet owners in the United States, Canada, and Europe seeking high-quality, refrigerated pet food products
Freshpet focuses on providing minimally processed, refrigerated pet food products to health-conscious consumers, leveraging a multi-channel retail presence to drive brand visibility and customer loyalty.
What this transaction means for investors
It looks like Champlain first purchased Freshpet in Q1 2019, while it was around $35 or $40. The stock soared above $150 a couple of times on hype from the pandemic-aided boom and strong growth it saw at the time, but has since dropped back down below $50 as the market reeled in Freshpet’s valuation. Following this dramatic decline, it looks like Champlain is washing its hands of the stock amid its steep underperformance.
However, I’d argue that Freshpet’s valuation might finally make sense for investors interested in the stock. Briefly trading at 22 times sales following the pandemic-aided boom, Freshpet currently trades at just 13 times EBITDA. Best yet for investors, the company has been profitable for two straight years and finally reached breakeven FCF generation this year, showing an ability to streamline its operations that hadn’t been seen before.
That said, Freshpet not only manufactures its products and controls much of its refrigerated supply chain, but also provides refrigerators to its retail customers, which consistently weighs on FCF. If the company can stick the landing with its vertically integrated model, it could pay ample dividends down the road. Investors have yet to really see this pay off, though, and that may be why Champlain finally liquidated its position.
All in all, I’m not ready to give up on Freshpet, but I’m not rushing to buy shares either. I’m happy to keep it on my watch list and see if its margins continue to improve. Selling to over 16 million households -- and with its digital orders growing by 43% in its last quarter -- Freshpet could be a steal if its improving margins are here to stay.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Freshpet and Synopsys. The Motley Fool recommends EOG Resources, Nutanix, and Penumbra. The Motley Fool has a disclosure policy.
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