Bryon T. McGregor, President and CEO of Alto Ingredients, Inc. (NASDAQ:ALTO), recently acquired 37,000 shares of the company's common stock. The purchase, which took place on November 12, 2024, was made at an average price of $1.3628 per share, totaling approximately $50,423. This transaction increases McGregor's direct ownership to 834,265 shares. The shares were bought in multiple transactions at prices ranging from $1.3550 to $1.3785.
In other recent news, Alto Ingredients Inc. has disclosed its financial results for the third quarter of 2024. The earnings call was led by CEO Bryon McGregor and CFO Rob Olander, with a detailed presentation available on the company's website. The company emphasized that the information discussed is time-sensitive and future results could diverge due to potential risks and uncertainties. No specific financial misses were indicated during the call. Alto Ingredients' outlook includes forward-looking statements, cautioning that actual results may differ materially from those projected. While the company has adopted a transparent approach in sharing information with investors, it has also warned about the variability in future outcomes. These are among the latest developments for the company.
InvestingPro Insights
In light of Bryon T. McGregor's recent share acquisition, it's worth examining Alto Ingredients' current financial position and market performance. According to InvestingPro data, the company's market capitalization stands at $101.56 million, reflecting its small-cap status. This valuation comes amid challenging market conditions, as evidenced by the stock's significant 29.9% decline over the past week and an 18.07% drop in the last month.
These sharp declines align with an InvestingPro Tip indicating that Alto Ingredients' stock "has taken a big hit over the last week." This recent volatility may have presented what McGregor perceived as a buying opportunity, given that he purchased shares at prices close to the current trading levels.
Another relevant InvestingPro Tip notes that Alto is "trading at a low Price / Book multiple," with the latest data showing a Price to Book ratio of 0.38. This low valuation metric could suggest that the stock is undervalued relative to its book value, potentially supporting McGregor's decision to increase his stake.
It's important to note that Alto Ingredients faces some financial challenges. The company is not profitable over the last twelve months, with a negative operating income of $24.2 million. Additionally, an InvestingPro Tip highlights that Alto "suffers from weak gross profit margins," which is reflected in the remarkably low gross profit margin of 0.86% for the last twelve months as of Q3 2024.
Investors considering following McGregor's lead should be aware that InvestingPro offers 11 additional tips for Alto Ingredients, providing a more comprehensive analysis of the company's financial health and market position. These insights could be valuable for those looking to make informed investment decisions in the volatile small-cap sector.
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