Oil-Dri Corp of America Insider Trades SendAa Signal

LAWRENCE WASHOW, Director at Oil-Dri Corp of America ODC, reported an insider buy on December 18, according to a new SEC filing.

What Happened: In a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, it was disclosed that WASHOW bought 1,000 shares of Oil-Dri Corp of America, amounting to a total of $68,890.

At Tuesday morning, Oil-Dri Corp of America shares are up by 0.98%, trading at $69.76.

About 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.

Oil-Dri Corp of America: Financial Performance Dissected

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 13.09% as of 31 October, 2023, 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.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 27.81%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Oil-Dri Corp of America's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.61.

Debt Management: Oil-Dri Corp of America's debt-to-equity ratio is below the industry average at 0.23, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 14.24 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.49 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): Indicated by a lower-than-industry-average EV/EBITDA ratio of 8.78, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

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.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Delving Into the Significance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Cracking Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.

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