Central Garden & Pet (NASDAQ:CENTA) Sets New 12-Month Low - Here's What Happened

Key Points

• Central Garden & Pet stock reached a new 52-week low at $27.60 during mid-day trading, closing slightly higher at $27.72.
• Analysts have mixed views on the stock; while Zacks Research downgraded it to a "hold," Wall Street Zen upgraded it to "strong-buy," leading to a consensus rating of "Hold" with an average target price of $38.67.
• Insider trading activity was noted as John D. Walker III sold 3,500 shares at an average price of $32.59, reducing his ownership by 4.94%.

Central Garden & Pet Company (NASDAQ:CENTA - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $27.60 and last traded at $27.72, with a volume of 10160 shares changing hands. The stock had previously closed at $28.04.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on CENTA. Zacks Research lowered Central Garden & Pet from a "strong-buy" rating to a "hold" rating in a research report on Friday, September 12th. Weiss Ratings restated a "hold (c+)" rating on shares of Central Garden & Pet in a research report on Saturday, September 27th. Wall Street Zen upgraded Central Garden & Pet from a "buy" rating to a "strong-buy" rating in a research report on Saturday, September 20th. Finally, Canaccord Genuity Group increased their price target on Central Garden & Pet from $45.00 to $50.00 and gave the stock a "buy" rating in a research note on Thursday, August 7th. One equities research analyst has rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, Central Garden & Pet has a consensus rating of "Hold" and an average target price of $38.67.

Central Garden & Pet Stock Performance

The company has a market cap of $1.76 billion, a P/E ratio of 12.70 and a beta of 0.63. The company has a 50 day moving average price of $32.23 and a 200-day moving average price of $32.10. 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:CENTA - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $1.56 earnings per share for the quarter, beating the consensus estimate of $1.34 by $0.22. Central Garden & Pet had a return on equity of 10.77% and a net margin of 4.44%.The business had revenue of $960.91 million during the quarter, compared to analysts' expectations of $993.66 million. Equities analysts expect that Central Garden & Pet Company will post 2.38 EPS for the current fiscal year.

Insider Activity

In related news, insider John D. Walker III sold 3,500 shares of the firm's stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $32.59, for a total transaction of $114,065.00. Following the completion of the transaction, the insider owned 67,328 shares of the company's stock, valued at $2,194,219.52. This trade represents a 4.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director John Ranelli sold 3,076 shares of the firm's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $32.58, for a total value of $100,216.08. Following the transaction, the director directly owned 1,427 shares of the company's stock, valued at $46,491.66. This represents a 68.31% decrease in their position. The disclosure for this sale can be found here. Company insiders own 20.28% of the company's stock.

Institutional Investors Weigh In On Central Garden & Pet

Several hedge funds have recently modified their holdings of CENTA. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Central Garden & Pet by 3.1% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 13,048 shares of the company's stock valued at $431,000 after purchasing an additional 398 shares during the last quarter. GAMMA Investing LLC lifted its holdings in shares of Central Garden & Pet by 3,083.5% during the first quarter. GAMMA Investing LLC now owns 32,599 shares of the company's stock valued at $996,000 after purchasing an additional 31,575 shares during the last quarter. SG Americas Securities LLC lifted its holdings in shares of Central Garden & Pet by 32.0% during the first quarter. SG Americas Securities LLC now owns 16,458 shares of the company's stock valued at $539,000 after purchasing an additional 3,990 shares during the last quarter. CWA Asset Management Group LLC purchased a new stake in shares of Central Garden & Pet during the first quarter valued at $573,000. Finally, Envestnet Portfolio Solutions Inc. purchased a new stake in shares of Central Garden & Pet during the first quarter valued at $224,000. 50.82% of the stock is owned by hedge funds and other institutional investors.

About Central Garden & Pet

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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