George Yuhas, General Counsel at Central Garden & Pet (NASDAQ:CENT), reported a large exercise of company stock options on January 21, according to a new SEC filing.

What Happened: Yuhas, General Counsel at Central Garden & Pet, made a strategic move by exercising stock options for 20,833 shares of CENT as detailed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission. The transaction value amounted to $204,788.

Currently, Central Garden & Pet shares are trading up 0.99%, priced at $32.63 during Thursday's morning. This values Yuhas's 20,833 shares at $204,788.

Get to Know Central Garden & Pet Better

Central Garden & Pet Co offers solutions that support healthier pets, greener lawns, and thriving gardens. Its products include dog and cat treats, chews, toys, beds, containment, grooming supplies, aquatics, small animal and bird supplies, equine and livestock products, insect control solutions, grass seed, wild bird feed, fertilizers, pest controls, live plants, and packet seeds, sold under brands such as Aqueon, Nylabone, Kaytee, Farnam, Pennington, Ferry Morse, Amdro, and Sevin. The company operates through two segments, Pet and Garden, and sells through retailers, independent stores, eCommerce channels, and professional markets. It has sales and distribution operations mainly across the United States, with additional facilities in Canada and Mexico.

Understanding the Numbers: Central Garden & Pet's Finances

Revenue Growth: Central Garden & Pet's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2025, the company achieved a revenue growth rate of approximately 1.3%. This indicates 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.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 28.98%, suggesting potential challenges in cost control and profitability compared to its 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 -0.16.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.91.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 12.66 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.66, 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): With an EV/EBITDA ratio lower than industry averages at 6.73, Central Garden & Pet could be considered undervalued.

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.

Understanding the Significance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Breaking Down the Significance of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Central Garden & Pet's Insider Trades.

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