Susan Kreh's Recent Buy: Acquires $239K In Oil-Dri Corp of America Stock

A significant insider buy by Susan Kreh, Chief Financial Officer at Oil-Dri Corp of America ODC, was executed on October 21, and reported in the recent SEC filing.

What Happened: Kreh's recent purchase of 3,500 shares of Oil-Dri Corp of America, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, reflects confidence in the company's potential. The total transaction value is $239,505.

In the Tuesday's morning session, Oil-Dri Corp of America's shares are currently trading at $69.5, experiencing a up of 1.56%.

Unveiling the Story Behind Oil-Dri Corp of America

Oil-Dri Corp of America develops, manufactures, and markets sorbent products made predominantly from clay. Its absorbent offerings, which draw liquid up, include cat litter, floor products, toxin control substances for livestock, and agricultural chemical carriers. The company has two segments based on the different characteristics of two primary customer groups namely Retail and Wholesale Products Group and Business to Business Products Group. The company's products are sold under various brands such as Cat's Pride, Jonny Cat, Amlan, Agsorb, Verge, Pure-Flo, and Ultra-Clear.

Key Indicators: Oil-Dri Corp of America's Financial Health

Positive Revenue Trend: Examining Oil-Dri Corp of America's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.88% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 29.04%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Oil-Dri Corp of America's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.26.

Debt Management: Oil-Dri Corp of America's debt-to-equity ratio is below the industry average. With a ratio of 0.34, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 12.6 is lower than the industry average, implying a discounted valuation for Oil-Dri Corp of America's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.38 is lower than the industry average, implying a discounted valuation for Oil-Dri Corp of America's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 7.72, Oil-Dri Corp of America's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Illuminating the Importance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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.

Unlocking the Meaning of Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes 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 Oil-Dri Corp of America's Insider Trades.

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