William E Brown Takes Money Off The Table, Sells $2.01M In Central Garden & Pet Stock

A substantial insider sell was reported on September 3, by William E Brown, Chairman at Central Garden & Pet CENT, based on the recent SEC filing.

What Happened: Brown's decision to sell 60,000 shares of Central Garden & Pet was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $2,012,177.

The latest market snapshot at Wednesday morning reveals Central Garden & Pet shares down by 0.0%, trading at $39.25.

All You Need to Know About Central Garden & Pet

Central Garden & Pet Co understands that home is central to life and has nurtured happy and healthy homes for over forty years. The segments of the company are the pet segment and garden segment. The company's trusted products are dedicated to helping lawns grow greener, gardens bloom bigger, pets live healthier and communities grow stronger. Central is home to a portfolio of more than sixty-five brands including Pennington, Nylabone, Kaytee, Amdro, and Aqueon, manufacturing and distribution capabilities, and a passionate, entrepreneurial growth culture. Central Garden and Pet is based in Walnut Creek, California, and has offices across North America and Europe.

Financial Milestones: Central Garden & Pet's Journey

Revenue Growth: Central Garden & Pet's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -2.63%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 31.82%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Central Garden & Pet's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.21.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.87.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 18.09 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.8, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Central Garden & Pet's EV/EBITDA ratio, lower than industry averages at 9.53, indicates attractively priced shares.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Deciphering Transaction Codes in Insider Filings

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Central Garden & Pet's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.