UFP Technologies Plunges 10.06%—What’s Fueling the Sudden Sell-Off?

Summary
• UFP Technologies (UFPT) tumbles 10.06% to $216.53, its lowest since May 2025
• Earnings beat expectations but revenue fell short of estimates, sparking profit-taking
• Options activity surges, with 200-strike puts trading at 214.59% leverage
• Sector peers like Medtronic (MDT) dip 0.4%, signaling broader medical device sector jitters

UFP Technologies’ stock has imploded intraday, shedding over 10% amid mixed earnings results and a volatile options landscape. Despite a 37% revenue surge and a 27% jump in net income, the stock’s sharp decline suggests underlying concerns about execution risks or sector-wide headwinds. With the 52-week range spanning $178.26 to $366.41, the sell-off raises urgent questions about whether this is a buying opportunity or a warning sign.

Earnings Optimism Clashes with Revenue Realities
UFP Technologies’ second-quarter earnings report—a $2.23 EPS beat and 37% revenue growth—initially buoyed the stock. However, the $151.18 million revenue figure, while up year-over-year, fell short of the $151.55 million estimate, triggering a profit-taking wave. The market’s reaction underscores a critical disconnect: while top-line growth is robust, investors are pricing in execution risks, particularly as the company forecasts 5.2% annual revenue growth versus the 8.2% industry average. Compounding this, the 11.59% net margin, though healthy, lags behind peers like Masimo (MASI) and Penumbra (PEN), which reported stronger margins in recent quarters.

Medical Device Sector Wavers as UFP Technologies Falters
The medical device sector, as represented by the NYSE:MDV index, has retreated 0.3% on the day, with Medtronic (MDT) down 0.4% and Masimo (MASI) plunging 11.86%. This synchronized decline suggests broader macro concerns, such as regulatory scrutiny or supply chain bottlenecks, are amplifying UFP Technologies’ woes. While UFPT’s 37% revenue growth outpaces the sector’s 5.2% forecast, its 24.28 P/E ratio—higher than the sector’s 21.09—reflects investor skepticism about sustaining margins amid rising input costs.

Options and ETFs to Navigate the Volatility
• 200-day average: 248.74 (above) • RSI: 58.15 (neutral) • MACD: -1.78 (bearish) • Bollinger Bands: 219.62–252.56

UFP Technologies is trading near its lower Bollinger Band at $216.53, suggesting oversold conditions. The 200-day MA at $248.74 remains a critical resistance level; a break below $219.62 (lower band) could trigger a test of the 52-week low. The 58.15 RSI indicates no immediate overbought/oversold extremes, but the negative MACD (-1.78) and declining volume (147,709 shares) hint at bearish momentum. With no leveraged ETFs available, options are the primary tool for positioning.

Top Options:
• UFPT20250815P200 (Put): Strike $200, Expiry 8/15, IV 40.31%, Leverage 214.59%, Delta -0.13, Theta -0.029, Gamma 0.015, Turnover 100
• UFPT20250815P210 (Put): Strike $210, Expiry 8/15, IV 70.92%, Leverage 27.87%, Delta -0.40, Theta -0.092, Gamma 0.015, Turnover 0

UFPT20250815P200 offers explosive leverage (214.59%) and moderate delta (-0.13), ideal for a 5% downside scenario. A 5% drop to $205.70 would yield a $5.70 payoff, translating to a 570% return on the $100 premium. The 40.31% IV and -0.029 theta suggest time decay is manageable for a 10-day expiry. UFPT20250815P210 is riskier due to zero turnover but offers higher IV (70.92%) and a -0.40 delta, making it sensitive to a sharper selloff. However, the lack of liquidity makes it unsuitable for most traders.

Action: Aggressive bears should prioritize UFPT20250815P200 for a 5% downside bet. If $219.62 breaks, consider adding UFPT20250815P210 for deeper coverage.

Backtest UFP Technologies Stock Performance
The backtest of the Ulta Pharmaceuticals (UFPT) performance after an intraday percentage change of less than -10% shows favorable short-to-medium-term gains. The 3-Day win rate is 54.89%, the 10-Day win rate is 59.96%, and the 30-Day win rate is 67.75%. Additionally, the maximum return during the backtest period was 11.24%, which occurred on day 59, indicating that there is potential for recovery after a significant pullback.

UFP Technologies at a Crossroads—Act Now or Watch the 200-Day MA
UFP Technologies’ 10.06% plunge has created a pivotal inflection point. While the 52-week low at $178.26 looms, the 200-day MA at $248.74 remains a critical psychological barrier. Investors should monitor the 219.62 support level and the sector leader Medtronic (MDT), which dipped 0.4% today. A break below $219.62 could accelerate the selloff, validating the bearish MACD and RSI. For options traders, the 200-strike put offers a high-leverage, low-risk play on a 5% downside. Meanwhile, the sector’s 0.3% decline suggests broader macro risks—regulatory or inflationary—could persist. Act now: Buy UFPT20250815P200 and watch the 200-day MA for a potential reversal signal.