Mission Produce (NASDAQ:AVO) Downgraded to "Hold" Rating by Zacks Research

Key Points

• Mission Produce has been downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating, reflecting a cautious outlook for the company's stock performance.
• The company reported earnings per share (EPS) of $0.12 for the last quarter, significantly surpassing the consensus estimate of $0.03, and revenue increased by 27.8% year-over-year.
• Several hedge funds have increased their stakes in Mission Produce, indicating growing institutional interest in the company despite the recent downgrade.

Mission Produce (NASDAQ:AVO - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

Mission Produce Trading Down 1.1%

Shares of NASDAQ AVO traded down $0.14 during midday trading on Tuesday, reaching $12.51. 254,737 shares of the stock were exchanged, compared to its average volume of 236,162. The company has a 50 day simple moving average of $12.24 and a 200 day simple moving average of $11.34. The stock has a market capitalization of $883.46 million, a P/E ratio of 25.02 and a beta of 0.57. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.23 and a current ratio of 1.98. Mission Produce has a twelve month low of $9.56 and a twelve month high of $15.25.

Mission Produce (NASDAQ:AVO - Get Free Report) last announced its quarterly earnings results on Thursday, June 5th. The company reported $0.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.03 by $0.09. The business had revenue of $380.30 million during the quarter, compared to the consensus estimate of $296.15 million. Mission Produce had a net margin of 2.63% and a return on equity of 7.82%. The business's revenue was up 27.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.14 EPS. As a group, equities analysts expect that Mission Produce will post 0.34 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Bryan E. Giles sold 3,500 shares of Mission Produce stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $11.43, for a total value of $40,005.00. Following the completion of the sale, the chief financial officer owned 131,062 shares in the company, valued at approximately $1,498,038.66. This trade represents a 2.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 35.41% of the company's stock.

Institutional Trading of Mission Produce

Institutional investors have recently added to or reduced their stakes in the stock. PNC Financial Services Group Inc. increased its holdings in Mission Produce by 123.1% in the 1st quarter. PNC Financial Services Group Inc. now owns 2,950 shares of the company's stock valued at $31,000 after purchasing an additional 1,628 shares during the last quarter. Tower Research Capital LLC TRC increased its holdings in Mission Produce by 211.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,649 shares of the company's stock valued at $54,000 after purchasing an additional 3,158 shares during the last quarter. Ameriflex Group Inc. acquired a new stake in Mission Produce in the 4th quarter valued at approximately $57,000. State of Wyoming acquired a new stake in Mission Produce in the 4th quarter valued at approximately $63,000. Finally, Diversified Trust Co acquired a new stake in Mission Produce in the 1st quarter valued at approximately $137,000. Institutional investors and hedge funds own 63.57% of the company's stock.

About Mission Produce

Mission Produce, Inc engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries.