Insider Unloading: William E Brown Sells $3.24M Worth Of Central Garden & Pet Shares

William E Brown, Chairman at Central Garden & Pet CENT, executed a substantial insider sell on May 22, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Brown sold 100,000 shares of Central Garden & Pet. The total transaction amounted to $3,240,068.

The latest update on Friday morning shows Central Garden & Pet shares down by 0.0%, trading at $35.95.

All You Need to Know About Central Garden & Pet

Central Garden & Pet Co understands that home is central to life and has nurtured happy and healthy homes for over forty years. The segments of the company are the pet segment and garden segment. The company's trusted products are dedicated to helping lawns grow greener, gardens bloom bigger, pets live healthier and communities grow stronger. Central is home to a portfolio of more than sixty-five brands including Pennington, Nylabone, Kaytee, Amdro, and Aqueon, manufacturing and distribution capabilities, and a passionate, entrepreneurial growth culture. Central Garden and Pet is based in Walnut Creek, California, and has offices across North America and Europe.

A Deep Dive into Central Garden & Pet's Financials

Revenue Growth: Central Garden & Pet's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -7.39%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Insights into Profitability:

• Gross Margin: With a low gross margin of 32.76%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Central Garden & Pet's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.99.

Debt Management: Central Garden & Pet's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.92.

Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 19.12 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.75 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Central Garden & Pet's EV/EBITDA ratio, lower than industry averages at 9.6, indicates attractively priced shares.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Understanding the Significance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

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.

Deciphering Transaction Codes in Insider Filings

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Central Garden & Pet's Insider Trades.

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