On December 15, a substantial insider purchase was made by Paul Hindsley, Director at Oil-Dri Corp of America (NYSE:ODC), as per the latest SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled that Hindsley made a notable purchase of 1,000 shares of Oil-Dri Corp of America, valuing at $51,680.
During Tuesday's morning session, Oil-Dri Corp of America shares down by 0.0%, currently priced at $51.68.
Discovering Oil-Dri Corp of America: A Closer Look
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 the Retail and Wholesale Products Group, which derives maximum revenue, and the 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.
Understanding the Numbers: Oil-Dri Corp of America's Finances
Revenue Challenges: Oil-Dri Corp of America's revenue growth over 3 months faced difficulties. As of 31 October, 2025, the company experienced a decline of approximately -5.83%. This indicates a decrease in 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.
Key Insights into Profitability Metrics:
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Gross Margin: The company shows a low gross margin of 29.46%, suggesting potential challenges in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Oil-Dri Corp of America's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.14.
Debt Management: With a below-average debt-to-equity ratio of 0.2, Oil-Dri Corp of America adopts a prudent financial strategy, indicating a balanced approach to debt management.
Valuation Metrics:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 14.24 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The P/S ratio of 1.94 is lower than the industry average, implying a discounted valuation for Oil-Dri Corp of America's stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 8.66, Oil-Dri Corp of America presents an attractive value opportunity.
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 Importance of Insider Transactions
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Exploring Key Transaction Codes
When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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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