Calavo Growers Sees Short Interest Surge by 51.8% in January

Short interest in Calavo Growers, Inc. (NASDAQ: CVGW) rose significantly in January 2024, climbing by 51.8% between January 15 and January 30. As of January 30, the total short interest reached 1,093,353 shares, up from 720,472 shares just two weeks prior. With an average daily trading volume of 896,335 shares, the days-to-cover ratio currently stands at 1.2 days, indicating a relatively short timeframe for covering short positions. Presently, 6.6% of the company’s shares are sold short.

Institutional Investment Activity

A wave of institutional investors has recently altered their holdings in Calavo Growers. Quarry LP initiated a new position in the third quarter valued at approximately $28,000. Similarly, Spire Wealth Management acquired shares worth about $30,000 during the second quarter. Garner Asset Management Corp also purchased a new stake in the fourth quarter for around $26,000. Notably, CANADA LIFE ASSURANCE Co increased its stake by 145.4% in the same period, now owning 2,407 shares valued at $52,000 after adding 1,426 shares. Tower Research Capital LLC significantly boosted its holdings by 673.0% during the second quarter, now possessing 2,775 shares valued at $74,000. Overall, institutional investors collectively hold 81.30% of Calavo Growers’ stock.

Analyst Perspectives and Price Movements

Recent evaluations by research firms have prompted varied ratings for Calavo Growers. Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on December 13, 2023. Additionally, Weiss Ratings reaffirmed a “hold (c-)” rating on December 29, while Stephens revised their price target down from $28.00 to $27.00 on January 22, 2024, maintaining an “equal weight” rating. Among analysts, one has classified the stock as a “buy,” while two have assigned a “hold” rating, resulting in an average rating of “hold” and a consensus price target of $33.50, according to data from MarketBeat.

On January 26, 2024, Calavo Growers’ stock experienced a modest increase, closing at $26.07, with a trading volume of 380,852 shares. This figure was lower than the average volume of 535,683 shares. The company’s stock has seen a one-year low of $18.40 and a one-year high of $28.72. Calavo Growers maintains a market capitalization of $465.87 million, a price-to-earnings (P/E) ratio of 23.70, and a beta of 0.39.

The company reported its quarterly earnings results on January 14, 2024, revealing earnings per share (EPS) of $0.25, which fell short of the consensus estimate of $0.37 by $0.12. Revenue for the quarter was $124.68 million, below the anticipated $147.95 million. The company posted a return on equity of 13.43% and a net margin of 3.05%. Analysts project Calavo Growers will achieve an EPS of $1.87 for the current fiscal year.

In addition to recent financial activity, Calavo Growers declared a quarterly dividend of $0.20 per share, which was paid on January 30, 2024. Shareholders of record on January 13 received the dividend, which indicates an annualized dividend of $0.80 and a yield of 3.1%. The company’s dividend payout ratio stands at 72.73%.

Founded in 1924 and headquartered in Santa Paula, California, Calavo Growers, Inc. is a prominent supplier and distributor of fresh avocados and other perishable foods. The company collaborates with growers in key production regions to source, ripen, and package avocados for various markets, including retail and foodservice. With a strong emphasis on quality and food safety, Calavo has established itself as a reliable intermediary between growers and consumers. The company operates primarily through two segments: Fresh and Calavo Foods.