Bullish indicating open at $55-$60, IPO prices at $37
Lecil E. Cole, the Chief Executive Officer of Calavo Growers Inc. (NASDAQ:CVGW), recently made a significant investment in the company by purchasing 40,775 shares of common stock. The transaction, which took place on April 15, 2025, had a total value of approximately $1,001,841. The shares were acquired at a weighted average price of $24.57, with individual transaction prices ranging from $24.01 to $24.75. The stock, currently trading at $26.20, appears undervalued according to InvestingPro analysis, with a strong financial health score and 24 consecutive years of dividend payments.
Following this acquisition, Cole now directly owns 615,000 shares of Calavo Growers. This move reflects a substantial increase in his holdings, underscoring his confidence in the company’s prospects. The transaction details were disclosed in a Form 4 filing with the Securities and Exchange Commission. With a market capitalization of $466 million and expected net income growth this year, InvestingPro data reveals 8 additional key insights about CVGW’s investment potential.
In other recent news, Calavo Growers reported first-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.33 surpassing the projected $0.30. However, the company’s revenue of $154.4 million fell short of the anticipated $159.85 million, despite a 21% year-over-year increase. The Fresh segment, which includes avocados and tomatoes, contributed significantly to the earnings with a 23.7% sales increase, largely due to a 30.5% rise in average price per carton. Gross profit for the quarter rose by 46.2% to $15.7 million, driven by an 88.8% increase in the Fresh segment’s gross profit. Additionally, Calavo Growers reduced selling, general, and administrative expenses by 23.6% to $10.3 million. The company’s adjusted EBITDA nearly tripled to $9.3 million, reflecting improvements in margins and operational efficiencies. In another development, Calavo Growers announced a $25 million stock buyback program, authorized by its Board of Directors, to enhance shareholder value. The buyback initiative is set to continue until March 18, 2027, unless modified by the Board.
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