Calavo Growers (NASDAQ:CVGW) Shares Gap Down After Earnings Miss

Posted by Defense World Staff on Jun 8th, 2023

Shares of Calavo Growers, Inc. (NASDAQ:CVGW – Get Rating) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $33.02, but opened at $28.00. Calavo Growers shares last traded at $30.49, with a volume of 65,881 shares.

The company reported ($0.01) earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.19). The company had revenue of $244.69 million for the quarter, compared to the consensus estimate of $265.13 million. Calavo Growers had a negative net margin of 0.46% and a positive return on equity of 3.52%. Calavo Growers’s revenue for the quarter was down 26.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.33 earnings per share.

Calavo Growers Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 6th. Investors of record on Friday, March 24th were paid a dividend of $0.10 per share. The ex-dividend date of this dividend was Thursday, March 23rd. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.24%. Calavo Growers’s dividend payout ratio is presently -133.33%.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Lake Street Capital decreased their price target on Calavo Growers from $50.00 to $38.00 and set a “buy” rating for the company in a research note on Tuesday, March 7th. Stephens dropped their price target on shares of Calavo Growers from $39.00 to $35.00 and set an “equal weight” rating on the stock in a research report on Tuesday, March 7th. Finally, StockNews.com started coverage on shares of Calavo Growers in a report on Thursday, May 18th. They issued a “sell” rating for the company.

Insider Buying and Selling at Calavo Growers

In related news, CEO Lecil E. Cole bought 50,000 shares of the firm’s stock in a transaction that occurred on Tuesday, March 28th. The shares were acquired at an average cost of $27.96 per share, for a total transaction of $1,398,000.00. Following the acquisition, the chief executive officer now directly owns 440,000 shares of the company’s stock, valued at approximately $12,302,400. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. In other news, CEO Lecil E. Cole acquired 50,000 shares of Calavo Growers stock in a transaction on Tuesday, March 28th. The stock was bought at an average cost of $27.96 per share, with a total value of $1,398,000.00. Following the completion of the purchase, the chief executive officer now owns 440,000 shares of the company’s stock, valued at $12,302,400. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Lecil E. Cole bought 33,253 shares of the company’s stock in a transaction dated Tuesday, March 21st. The stock was purchased at an average cost of $23.91 per share, for a total transaction of $795,079.23. Following the completion of the transaction, the chief executive officer now owns 373,253 shares of the company’s stock, valued at $8,924,479.23. The disclosure for this purchase can be found here. 3.50% of the stock is owned by corporate insiders.

Institutional Trading of Calavo Growers

Several large investors have recently added to or reduced their stakes in CVGW. BlackRock Inc. grew its holdings in shares of Calavo Growers by 0.6% during the first quarter. BlackRock Inc. now owns 2,753,941 shares of the company’s stock valued at $100,382,000 after buying an additional 15,751 shares in the last quarter. Nuance Investments LLC increased its holdings in shares of Calavo Growers by 47.8% in the 1st quarter. Nuance Investments LLC now owns 1,892,965 shares of the company’s stock valued at $54,461,000 after purchasing an additional 611,891 shares during the period. Vanguard Group Inc. lifted its position in shares of Calavo Growers by 12.5% in the first quarter. Vanguard Group Inc. now owns 1,445,222 shares of the company’s stock worth $52,678,000 after purchasing an additional 160,709 shares in the last quarter. State Street Corp boosted its holdings in shares of Calavo Growers by 1.8% during the second quarter. State Street Corp now owns 640,518 shares of the company’s stock worth $26,722,000 after purchasing an additional 11,488 shares during the period. Finally, Clearbridge Investments LLC grew its position in Calavo Growers by 1.0% during the first quarter. Clearbridge Investments LLC now owns 637,915 shares of the company’s stock valued at $18,353,000 after purchasing an additional 6,291 shares in the last quarter. 73.96% of the stock is owned by institutional investors and hedge funds.

Calavo Growers Trading Down 2.3 %

The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.84 and a current ratio of 1.26. The stock has a market cap of $572.47 million, a price-to-earnings ratio of -107.56 and a beta of 0.71. The company’s 50 day simple moving average is $30.83 and its two-hundred day simple moving average is $31.07.

Calavo Growers Company Profile

(Get Rating)

Calavo Growers, Inc engages in the marketing and distribution of avocados, prepared avocado products, and other perishable foods. It operates through the Grown and Prepared segments. The Grown segment consists of fresh avocados, tomatoes, and papayas. The Prepared segment includes all other products including fresh-cut fruits and vegetables, ready-to-eat sandwiches, wraps, salads and snacks, guacamole, and salsa.