Smart Money Move: Michael A Browne Grabs $115K Worth Of Calavo Growers Stock

A notable insider purchase on April 11, was reported by Michael A Browne, Executive Vice President at Calavo Growers CVGW, based on the most recent SEC filing.

What Happened: Browne demonstrated confidence in Calavo Growers by purchasing 5,000 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the transaction is $115,600.

During Friday's morning session, Calavo Growers shares up by 1.8%, currently priced at $23.15.

Get to Know Calavo Growers Better

Calavo Growers Inc is in the avocado industry and an expanding provider of value-added fresh food. The group markets and distribute avocados, prepared avocado products, and other perishable foods to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers across the world. The company distributes its products both domestically and internationally and reports its operations in two different business segments: Grown and Prepared. The Grown segment consists of fresh avocados, tomatoes, and papayas. The Prepared segment comprises all other products including fresh-cut fruits and vegetables, ready-to-eat sandwiches, wraps, salads and snacks, guacamole, and salsa sold at retail and food service as well as avocado pulp sold to food service.

Calavo Growers's Financial Performance

Revenue Growth: Calavo Growers's remarkable performance in 3 months is evident. As of 31 January, 2025, the company achieved an impressive revenue growth rate of 20.99%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Staples sector.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 10.19%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Calavo Growers's EPS is below the industry average. The company faced challenges with a current EPS of 0.25. This suggests a potential decline in earnings.

Debt Management: Calavo Growers's debt-to-equity ratio is below the industry average. With a ratio of 0.12, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 29.15, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.59, 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): The company's EV/EBITDA ratio 14.28 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 Calavo Growers's Insider Trades.

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