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

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 equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday, August 26th,Zacks.com reports.

Mission Produce Price Performance

AVO stock traded down $0.09 on Tuesday, reaching $12.43. The company had a trading volume of 104,078 shares, compared to its average volume of 320,437. Mission Produce has a 1 year low of $9.56 and a 1 year high of $15.25. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.23 and a current ratio of 1.98. The company's fifty day moving average is $12.25 and its 200 day moving average is $11.34. The company has a market cap of $877.45 million, a P/E ratio of 24.89 and a beta of 0.57.

Mission Produce (NASDAQ:AVO - Get Free Report) last issued its quarterly earnings results on Thursday, June 5th. The company reported $0.12 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.09. The company had revenue of $380.30 million during the quarter, compared to the consensus estimate of $296.15 million. Mission Produce had a return on equity of 7.82% and a net margin of 2.63%.Mission Produce's revenue was up 27.8% on a year-over-year basis. During the same period in the previous year, the firm posted $0.14 EPS. On average, research analysts forecast that Mission Produce will post 0.34 earnings per share for the current year.

Insider Buying and Selling

In other Mission Produce news, CFO Bryan E. Giles sold 3,500 shares of Mission Produce stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $11.43, for a total value of $40,005.00. Following the completion of the transaction, the chief financial officer directly owned 131,062 shares in the company, valued at $1,498,038.66. The trade was a 2.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 35.41% of the company's stock.

Institutional Investors Weigh In On Mission Produce

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Teacher Retirement System of Texas raised its holdings in Mission Produce by 53.6% during the first quarter. Teacher Retirement System of Texas now owns 121,111 shares of the company's stock worth $1,269,000 after purchasing an additional 42,269 shares in the last quarter. Cambridge Investment Research Advisors Inc. bought a new stake in Mission Produce during the first quarter worth approximately $1,339,000. SG Americas Securities LLC raised its holdings in Mission Produce by 319.0% during the first quarter. SG Americas Securities LLC now owns 66,771 shares of the company's stock worth $700,000 after purchasing an additional 50,835 shares in the last quarter. Diversified Trust Co bought a new stake in Mission Produce during the first quarter worth approximately $137,000. Finally, Millennium Management LLC raised its holdings in Mission Produce by 153.3% during the fourth quarter. Millennium Management LLC now owns 453,757 shares of the company's stock worth $6,520,000 after purchasing an additional 274,591 shares in the last quarter. Institutional investors 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.