Mission Produce (NASDAQ:AVO) Stock Falls 6.6% - Here's Why

Key Points

• Mission Produce shares fell 6.6% to approximately $11.69, with trading volume down 91% from the average daily level.
• Analyst sentiment remains mixed: Weiss Ratings downgraded the stock to “sell,” while the broader analyst consensus is “Moderate Buy” with an average price target of $16.50.
• The company exceeded quarterly expectations, reporting $0.18 in EPS versus $0.12 expected and $450 million in revenue, but Chairman Stephen Barnard recently sold 111,358 shares and insiders have sold about $3.24 million worth of stock over three months.

Shares of Mission Produce, Inc. (NASDAQ:AVO - Get Free Report) fell 6.6% during trading on Thursday. The stock traded as low as $11.87 and last traded at $11.6860. Approximately 95,113 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 1,012,747 shares. The stock had previously closed at $12.51.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the stock. Weiss Ratings downgraded shares of Mission Produce from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, September 18th. Roth Capital reissued a "buy" rating and set a $17.00 price objective on shares of Mission Produce in a report on Thursday, September 10th. Wall Street Zen upgraded Mission Produce from a "sell" rating to a "hold" rating in a research report on Saturday, September 12th. Finally, UBS Group set a $16.00 target price on Mission Produce in a research report on Wednesday, June 10th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $16.50.

Mission Produce Stock Down 11.0%

The company has a market cap of $976.76 million, a PE ratio of 369.12 and a beta of 0.43. The company has a fifty day moving average of $12.86 and a two-hundred day moving average of $12.79. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.24 and a current ratio of 1.92.

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

Insider Activity at Mission Produce

In related news, Chairman Stephen Barnard sold 111,358 shares of the company's stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $13.01, for a total transaction of $1,448,767.58. Following the transaction, the chairman directly owned 1,695,185 shares in the company, valued at approximately $22,054,356.85. This represents a 6.16% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Over the last three months, insiders have sold 250,062 shares of company stock worth $3,238,747. 30.85% of the stock is currently owned by insiders.

Institutional Trading of Mission Produce

Several institutional investors have recently added to or reduced their stakes in the company. Diversified Trust Co lifted its stake in Mission Produce by 12.0% during the 1st quarter. Diversified Trust Co now owns 19,373 shares of the company's stock valued at $267,000 after acquiring an additional 2,074 shares during the period. Principal Financial Group Inc. increased its stake in shares of Mission Produce by 5.9% in the second quarter. Principal Financial Group Inc. now owns 37,509 shares of the company's stock worth $442,000 after acquiring an additional 2,082 shares during the period. Public Employees Retirement System of Ohio purchased a new position in shares of Mission Produce during the second quarter worth $26,000. Arizona State Retirement System raised its holdings in shares of Mission Produce by 20.8% during 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 during the last quarter. Finally, Quantbot Technologies LP acquired a new position in Mission Produce during the second quarter valued at $44,000. Institutional investors own 63.57% of the company's stock.

About Mission Produce

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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