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Vital Farms, Inc. (VITL) shares rose Thursday after a report said it was exploring strategic options, including a possible sale or take-private transaction.

Axios Pro report emerged Wednesday and cited a targeted valuation of $15 to $25 per share for the Austin, Texas-based pasture-raised egg producer.

The reported review follows a difficult second quarter, with Jefferies citing industry oversupply, investments to narrow price gaps, and low-margin breaker sales as pressures on profitability.

Sales roughly matched consensus, but higher costs and an unfavourable sales mix pushed adjusted EBITDA below expectations.

Despite those pressures, management reported improved sales velocity and new household acquisition where price gaps had narrowed, while production curbs and distribution gains supported its recovery outlook.

Alongside those operating measures, the company secured $185 million in new credit facilities after quarter-end, paused Vital Crossroads construction, and ended buybacks to prioritize liquidity.

Management targets a gross margin run rate of at least 30% exiting the fourth quarter, although Jefferies said recovery depends on consumer responsiveness and stable competition.

With that recovery in view, Jefferies reiterated its "buy" rating and set a $15 price target, saying, "we think Q2 absorbed the worst of the pressure."

In Thursday's trading, shares rose 7.5% in the premarket session following the sale report.

Vital Farms shares traded 10.5% higher on Thursday afternoon.