Oil-Dri Corp of America Board Member Sold $148K In Company Stock

On April 21, a recent SEC filing unveiled that EllenBlair Chube, Board Member at Oil-Dri Corp of America ODC made an insider sell.

What Happened: Chube's recent move involves selling 3,500 shares of Oil-Dri Corp of America. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $148,785.

The latest update on Tuesday morning shows Oil-Dri Corp of America shares down by 0.0%, trading at $41.52.

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.

Oil-Dri Corp of America: Delving into Financials

Revenue Growth: Oil-Dri Corp of America displayed positive results in 3 months. As of 31 January, 2025, the company achieved a solid revenue growth rate of approximately 10.64%. This indicates a notable 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.

Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 29.46%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Oil-Dri Corp of America's EPS is below the industry average. The company faced challenges with a current EPS of 0.95. This suggests a potential decline in earnings.

Debt Management: Oil-Dri Corp of America's debt-to-equity ratio is below the industry average at 0.25, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 13.29 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.59, 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 7.51 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Unmasking the Significance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

A Closer Look at Important 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.

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