Insider Buying: The Calavo Growers, Inc. (NASDAQ:CVGW) CEO & President Just Bought 15% More Shares
Those following along with Calavo Growers, Inc. (NASDAQ:CVGW) will no doubt be intrigued by the recent purchase of shares by Lecil Cole, CEO & President of the company, who spent a stonking US$1.2m on stock at an average price of US$24.29. Not only is that a big swing, but it increased their holding size by 15%, which is definitely great to see.
See our latest analysis for Calavo Growers
Calavo Growers Insider Transactions Over The Last Year
In fact, the recent purchase by Lecil Cole was the biggest purchase of Calavo Growers shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$26.73 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Calavo Growers share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 51.00k shares for US$1.2m. On the other hand they divested 2.00k shares, for US$64k. Overall, Calavo Growers insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Calavo Growers
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.3% of Calavo Growers shares, worth about US$25m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Calavo Growers Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Calavo Growers we think they are probably pretty confident of a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Calavo Growers.
Of course Calavo Growers may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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