Eye On Growth: Lecil E Cole Adds $499K Of Calavo Growers Stock To Portfolio

It was revealed in a recent SEC filing that Lecil E Cole, Chief Executive Officer at Calavo Growers CVGW made a noteworthy insider purchase on April 15,.

What Happened: Cole’s recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, involves purchasing 21,070 shares of Calavo Growers. The total transaction value is $499,991.

Tracking the Wednesday’s morning session, Calavo Growers shares are trading at $25.41, showing a up of 5.44%.

All You Need to Know About Calavo Growers

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 revenue growth over a period of 3 months has been noteworthy. As of 31 January, 2025, the company achieved a revenue growth rate of approximately 20.99%. This indicates a substantial increase in the company’s 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 Insights into Profitability Metrics:

• Gross Margin: With a low gross margin of 10.19%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• 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: With a below-average debt-to-equity ratio of 0.12, Calavo Growers adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 30.9 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.63, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 15.18, Calavo Growers demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Insider Transactions Are Important

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

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Navigating the World of Insider 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 Calavo Growers’s Insider Trades.

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