It was revealed in a recent SEC filing that Laura G Scheland, VP and Chief Legal Officer at Oil-Dri Corp of America ODC made a noteworthy insider purchase on October 21,.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Scheland increased their investment in Oil-Dri Corp of America by purchasing 3,500 shares through open-market transactions, signaling confidence in the company’s potential. The total transaction value is $239,505.

During Tuesday’s morning session, Oil-Dri Corp of America shares up by 1.56%, currently priced at $69.5.

Delving into Oil-Dri Corp of America’s Background

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 Milestones: Oil-Dri Corp of America’s Journey

Revenue Growth: Oil-Dri Corp of America’s revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2024, the company achieved a revenue growth rate of approximately 5.88%. This indicates 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.

Evaluating Earnings Performance:

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

• Earnings per Share (EPS): Oil-Dri Corp of America’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.26.

Debt Management: Oil-Dri Corp of America’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.34.

Evaluating Valuation:

• 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 P/S ratio of 1.38 is lower than the industry average, implying a discounted valuation for Oil-Dri Corp of America’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Oil-Dri Corp of America’s EV/EBITDA ratio at 7.72 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Insider Transactions Are Important

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Transaction Codes Worth Your Attention

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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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