Samuel Klepfish, a director at Innovative Food Holdings Inc. (OTC:IVFH), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Klepfish sold a total of 133,570 shares of common stock over two days. The sales, which took place on November 20 and 21, were executed at prices ranging from $1.60 to $1.63 per share, amounting to a total value of $213,896.
Following these transactions, Klepfish's direct ownership in the company now stands at 2,403,101 shares. The sales were conducted as open market transactions, as noted in the filing. The weighted average price for the shares sold on November 20 was $1.60, with multiple transactions occurring within a price range of $1.56 to $1.60.
In other recent news, Innovative Food Holdings reported substantial growth in its third quarter of 2024. The company's pivot to a retail-focused business model has resulted in a 5.5% revenue increase in its core foodservice business from Q3 2023 and a significant 25% year-over-year revenue growth for Q4. The firm also reported a GAAP net income of $1.3 million for Q3 2024, a considerable increase from the previous year.
Strategic moves such as the acquisition of Golden Organics LLC and the sale of the iGourmet business are expected to enhance the customer base and operational efficiency. These developments contribute to Innovative Food Holdings' goal of reaching $1 billion in revenue. The company is also focused on reaching initial milestones of $110 million in revenue and $10 million in adjusted EBITDA.
Despite a temporary dip in gross margins due to the transition to retail operations, the company's strategic shift has resulted in significant revenue growth. The firm expects the new retail business to become profitable by 2025 and gross margins to improve as retail operations scale. These are among the recent developments in the company's operations.
InvestingPro Insights
The recent stock sale by Samuel Klepfish, a director at Innovative Food Holdings Inc. (OTC:IVFH), comes at a time when the company's stock has shown remarkable performance. According to InvestingPro data, IVFH has demonstrated a strong return over the last year, with a 146.27% price total return. This impressive gain is part of a broader trend, as the stock has seen a 35.58% increase over the past six months and a substantial 123.7% year-to-date return.
Despite the recent insider sale, InvestingPro Tips highlight that IVFH is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential value for investors. The company's PEG ratio of 0.5 for the last twelve months as of Q3 2024 supports this view, indicating that the stock might be undervalued relative to its growth prospects.
It's worth noting that while the company's revenue for the last twelve months as of Q3 2024 stood at $69.46 million, it experienced a 7.6% revenue decline during this period. This context adds depth to understanding the insider's decision to sell shares.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for IVFH, providing a broader perspective on the company's financial health and market position.
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