Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A notable insider purchase on December 18, was reported by ALLAN SELIG, Director at Oil-Dri Corp of America (NYSE:ODC), based on the most recent SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled that SELIG made a notable purchase of 1,000 shares of Oil-Dri Corp of America, valuing at $68,890.
At Tuesday morning, Oil-Dri Corp of America shares are down by 0.0%, trading at $69.08.
Get to Know Oil-Dri Corp of America Better Oil-Dri Corp of America develops, manufactures, and markets sorbent products made predominantly from clay. Its absorbent offerings, which draw liquid up, include cat litter, floor products, toxin control substances for livestock, and agricultural chemical carriers. The company has two segments based on the different characteristics of two primary customer groups namely Retail and Wholesale Products Group and Business to Business Products Group. The company's products are sold under various brands such as Cat's Pride, Jonny Cat, Amlan, Agsorb, Verge, Pure-Flo, and Ultra-Clear.
Financial Insights: Oil-Dri Corp of America Revenue Growth: Oil-Dri Corp of America's remarkable performance in 3 months is evident. As of 31 October, 2023, the company achieved an impressive revenue growth rate of 13.09%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher than the average among peers.
Navigating Financial Profits:
- Gross Margin: With a low gross margin of 27.81%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
- Earnings per Share (EPS): Oil-Dri Corp of America's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.61.
In-Depth Valuation Examination:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 14.24 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 1.49 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Oil-Dri Corp of America's EV/EBITDA ratio, lower than industry averages at 8.78, indicates attractively priced shares.
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The Impact of Insider Transactions on Investments Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
A Closer Look at Important Transaction Codes When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Oil-Dri Corp of America's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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