Mission Produce, Inc. (AVO) - What Are Researchers Thinking About This Stock?

Key Points

• Analysts remain moderately bullish on Mission Produce, with a consensus “Moderate Buy” rating and an average 12-month price target of $16, compared with the referenced share price near $11.73.
• The company exceeded quarterly expectations, reporting $0.18 in EPS versus $0.12 expected and $450 million in revenue, up 25.8% year over year. Management also targets mid-single-digit organic sales growth and 300 basis points of margin expansion over the next five years.
• Despite the long-term growth outlook, investors face execution and valuation risks: the stock has recently declined, carries a very high reported P/E ratio and minimal net margin, while insiders have sold shares worth about $3.2 million over the past three months.

Shares of Mission Produce, Inc. (NASDAQ:AVO - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the six research firms that are currently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating on the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $16.00.

Several analysts have commented on AVO shares. Wall Street Zen raised shares of Mission Produce from a "sell" rating to a "hold" rating in a research report on Saturday, September 12th. Roth Capital restated a "buy" rating and set a $17.00 price target on shares of Mission Produce in a research note on Thursday, September 10th. Stephens reaffirmed an "overweight" rating and issued a $15.00 price target on shares of Mission Produce in a report on Friday. Finally, Weiss Ratings raised shares of Mission Produce from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday.

Mission Produce Trading Down 0.5%

Shares of Mission Produce stock opened at $11.73 on Friday. The firm has a market cap of $1.03 billion, a PE ratio of 391.13 and a beta of 0.43. Mission Produce has a 1 year low of $10.07 and a 1 year high of $15.53. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.92 and a quick ratio of 1.24. The stock has a fifty day moving average price of $12.82 and a 200-day moving average price of $12.78.

Mission Produce (NASDAQ:AVO - Get Free Report) last issued its quarterly earnings results on Tuesday, September 8th. The company reported $0.18 earnings per share for the quarter, topping analysts' consensus estimates of $0.12 by $0.06. The company had revenue of $450.00 million for the quarter, compared to the consensus estimate of $367.57 million. Mission Produce had a net margin of 0.12% and a return on equity of 5.91%. The firm's quarterly revenue was up 25.8% on a year-over-year basis. During the same period in the previous year, the firm earned $0.26 EPS. Equities research analysts anticipate that Mission Produce will post 0.61 EPS for the current year.

Key Mission Produce News

Here are the key news stories impacting Mission Produce this week:

• Positive Sentiment: Stephens reaffirmed its “Overweight” rating and set a $15 price target, implying roughly 28% upside from the referenced share price. The endorsement suggests the firm believes Mission Produce’s valuation and growth prospects are attractive. Benzinga analyst rating
• Positive Sentiment: At its investor day, Mission Produce outlined targets for mid-single-digit organic sales growth and 300 basis points of margin expansion over the next five years. Management also set a 2035 ambition to double sales and triple adjusted EBITDA, with the strategy intended to support high-single-digit to double-digit annual shareholder returns over time. Mission Produce investor day targets
• Neutral Sentiment: Investor coverage is focused on whether the company can convert its avocado sourcing, production and distribution strategy into sustained profit growth. The targets offer a longer-term framework, but execution and margin improvement remain important risks for investors. Investor day slideshow
• Negative Sentiment: Mission Produce shares recently fell about 5.8%, while coverage also noted the stock was down 6.8% since its latest earnings report. The decline indicates that investors may have viewed the investor-day outlook as insufficient to offset near-term concerns or may be taking profits after prior earnings-related gains. Why Mission Produce shares are declining
• Negative Sentiment: With a very high reported P/E ratio and minimal net margin, AVO’s valuation leaves less room for execution disappointments. Investors may therefore be demanding clearer evidence of near-term earnings acceleration before fully crediting the 2035 ambitions. Mission Produce valuation analysis

Insider Transactions at Mission Produce

In other Mission Produce news, Chairman Stephen Barnard sold 21,646 shares of the business's stock in a transaction on Thursday, September 24th. The stock was sold at an average price of $13.00, for a total value of $281,398.00. Following the sale, the chairman directly owned 1,684,794 shares in the company, valued at $21,902,322. The trade was a 1.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders sold 250,062 shares of company stock valued at $3,238,747 over the last three months. Company insiders own 30.85% of the company's stock.

Institutional Investors Weigh In On Mission Produce

Several large investors have recently added to or reduced their stakes in the company. State Street Corp raised its stake in Mission Produce by 41.3% in the 2nd quarter. State Street Corp now owns 1,423,029 shares of the company's stock valued at $16,778,000 after acquiring an additional 416,126 shares during the period. The Manufacturers Life Insurance Company lifted its holdings in Mission Produce by 31.2% during the second quarter. The Manufacturers Life Insurance Company now owns 16,671 shares of the company's stock valued at $197,000 after purchasing an additional 3,961 shares during the last quarter. Capital Advantage Inc. bought a new position in Mission Produce during the second quarter worth about $311,000. Squarepoint Ops LLC purchased a new position in shares of Mission Produce in the second quarter worth about $2,836,000. Finally, Arizona State Retirement System increased its stake in shares of Mission Produce by 20.8% in the second quarter. Arizona State Retirement System now owns 15,236 shares of the company's stock worth $180,000 after purchasing an additional 2,628 shares in the last quarter. Hedge funds and other institutional investors own 63.57% of the company's stock.

Mission Produce Company Profile

Mission Produce, Inc is a global avocado sourcing, distribution and marketing company headquartered in Oxnard, California. The company supplies fresh avocados to retailers, foodservice operators, wholesalers and other customers, managing activities that include procurement, quality control, ripening, packaging and distribution.

Mission Produce sources avocados from growing regions in North and South America and other international markets. Its operations are supported by ripening and distribution facilities designed to provide customers with avocados at different stages of readiness.

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