Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On December 18, GEORGE ROETH, Board Member at Oil-Dri Corp of America (NYSE:ODC) executed a significant insider buy, as disclosed in the latest SEC filing.
What Happened: ROETH's recent purchase of 1,000 shares of Oil-Dri Corp of America, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, reflects confidence in the company's potential. The total transaction value is $68,890.
The latest update on Tuesday morning shows Oil-Dri Corp of America shares up by 0.98%, trading at $69.76.
Unveiling the Story Behind Oil-Dri Corp of America 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.
Understanding the Numbers: Oil-Dri Corp of America's Finances 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. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.
Key Insights into Profitability Metrics:
- Gross Margin: The company faces challenges with a low gross margin of 27.81%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.61, Oil-Dri Corp of America showcases strong earnings per share.
Financial Valuation:
- 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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Why Insider Transactions Are Important Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Exploring Key Transaction Codes Examining transactions, investors often concentrate on those unfolding 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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