Central Garden & Pet (NASDAQ:CENT) Hits New 12-Month Low - What's Next?

Key Points

• Central Garden & Pet shares hit a new 12-month low at $28.94 amid trading, marking a significant drop from its previous close of $29.58.
• Analysts have downgraded the company's rating from "strong-buy" to "hold," with an average consensus target price of $40.00.
• Recent insider trading revealed notable sell-offs, with two insiders reducing their holdings by approximately 4.94% and 68.31%, indicating potential concern among company executives.

Shares of Central Garden & Pet Company (NASDAQ:CENT - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $28.94 and last traded at $28.98, with a volume of 67476 shares trading hands. The stock had previously closed at $29.58.

Analysts Set New Price Targets

A number of analysts recently weighed in on CENT shares. Zacks Research downgraded Central Garden & Pet from a "strong-buy" rating to a "hold" rating in a report on Friday, September 12th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Central Garden & Pet in a research report on Wednesday, October 8th. One investment analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $40.00.

Central Garden & Pet Price Performance

The business's 50 day moving average is $34.87 and its two-hundred day moving average is $35.77. The firm has a market cap of $1.82 billion, a P/E ratio of 13.17 and a beta of 0.67. The company has a quick ratio of 2.28, a current ratio of 3.56 and a debt-to-equity ratio of 0.75.

Central Garden & Pet (NASDAQ:CENT - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $1.56 earnings per share for the quarter, topping analysts' consensus estimates of $1.34 by $0.22. Central Garden & Pet had a net margin of 4.44% and a return on equity of 10.77%. The business had revenue of $960.91 million during the quarter, compared to the consensus estimate of $993.66 million. During the same quarter last year, the firm earned $1.19 earnings per share. Central Garden & Pet's quarterly revenue was down 3.6% on a year-over-year basis. As a group, analysts anticipate that Central Garden & Pet Company will post 2.38 earnings per share for the current year.

Insider Activity at Central Garden & Pet

In other Central Garden & Pet news, insider John D. Walker III sold 3,500 shares of the business's stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $32.59, for a total value of $114,065.00. Following the transaction, the insider directly owned 67,328 shares of the company's stock, valued at approximately $2,194,219.52. The trade was a 4.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John Ranelli sold 3,076 shares of the business's stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $32.58, for a total value of $100,216.08. Following the completion of the transaction, the director directly owned 1,427 shares in the company, valued at approximately $46,491.66. This trade represents a 68.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. 8.19% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Central Garden & Pet

Several hedge funds and other institutional investors have recently modified their holdings of CENT. GAMMA Investing LLC increased its holdings in shares of Central Garden & Pet by 4,556.8% during the first quarter. GAMMA Investing LLC now owns 3,446 shares of the company's stock valued at $126,000 after acquiring an additional 3,372 shares in the last quarter. Handelsbanken Fonder AB increased its holdings in shares of Central Garden & Pet by 14.6% during the first quarter. Handelsbanken Fonder AB now owns 11,016 shares of the company's stock valued at $404,000 after acquiring an additional 1,400 shares in the last quarter. Exchange Traded Concepts LLC bought a new stake in shares of Central Garden & Pet during the first quarter worth about $1,046,000. Allspring Global Investments Holdings LLC increased its position in shares of Central Garden & Pet by 0.8% during the first quarter. Allspring Global Investments Holdings LLC now owns 817,499 shares of the company's stock worth $29,757,000 after acquiring an additional 6,307 shares in the last quarter. Finally, Teacher Retirement System of Texas lifted its position in Central Garden & Pet by 32.5% in the 1st quarter. Teacher Retirement System of Texas now owns 22,444 shares of the company's stock valued at $823,000 after acquiring an additional 5,507 shares in the last quarter. Institutional investors own 16.13% of the company's stock.

Central Garden & Pet Company Profile

Central Garden & Pet Co engages in the production and distribution of branded and private label products for the lawn, garden, and pet supplies markets. It operates through the Pet and Garden segments. The Pet segment focuses on dog and cat supplies such as dog treats and chews, toys, pet beds and containment, grooming products, waste management and training pads, supplies for aquatics, small animals, reptiles and pet birds including toys, cages and habitats, bedding, food and supplements, products for equine and livestock, animal and household health and insect control products, live fish, and small animals, as well as outdoor cushions.

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