On October 21, Laura G Scheland, VP and Chief Legal Officer at Oil-Dri Corp of America ODC executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: Scheland demonstrated confidence in Oil-Dri Corp of America by purchasing 3,500 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the transaction is $239,505.

Oil-Dri Corp of America‘s shares are actively trading at $69.5, experiencing a up of 1.56% during Tuesday’s morning session.

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 displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 5.88%. This indicates a notable 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.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 29.04%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Oil-Dri Corp of America’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.26.

Debt Management: Oil-Dri Corp of America’s debt-to-equity ratio is below the industry average at 0.34, reflecting a lower dependency on debt financing and a more conservative financial approach.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 12.6 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.38, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 7.72 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Pay Attention to Insider Transactions

Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

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.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.