Mission Produce (NASDAQ:AVO) Trading 4.9% Higher Following Better-Than-Expected Earnings

Key Points

• Mission Produce shares rose 4.9% after the company reported quarterly EPS of $0.18, beating estimates by $0.06, while revenue reached $450 million versus expectations of $367.57 million. Revenue increased 25.8% year over year.
• The board authorized a $100 million share-repurchase program, allowing the company to buy back up to 13.8% of its outstanding shares.
• Analyst sentiment remains moderately positive, with a consensus “Moderate Buy” rating and a $16.50 price target, while insiders have acquired more than 3.35 million shares over the past 90 days.

Mission Produce, Inc. (NASDAQ:AVO - Get Free Report) shot up 4.9% during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $14.22 and last traded at $13.5030. Approximately 500,123 shares traded hands during trading, a decline of 51% from the average session volume of 1,023,160 shares. The stock had previously closed at $12.87.

The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.06. The business had revenue of $450.00 million for the quarter, compared to analysts' expectations of $367.57 million. Mission Produce had a return on equity of 6.92% and a net margin of 1.83%.Mission Produce's revenue for the quarter was up 25.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.26 EPS.

Mission Produce declared that its Board of Directors has authorized a stock repurchase program on Monday, June 8th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to purchase up to 13.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company's leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

Several brokerages recently commented on AVO. Weiss Ratings reissued a "hold (c-)" rating on shares of Mission Produce in a research report on Friday. Wall Street Zen downgraded shares of Mission Produce from a "hold" rating to a "sell" rating in a report on Saturday, June 13th. Finally, UBS Group set a $16.00 price target on shares of Mission Produce in a research report on Wednesday, June 10th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Mission Produce presently has a consensus rating of "Moderate Buy" and a consensus target price of $16.50.

Insiders Place Their Bets

In related news, Director Bruce Taylor acquired 70,283 shares of Mission Produce stock in a transaction on Tuesday, June 23rd. The stock was purchased at an average cost of $11.25 per share, with a total value of $790,683.75. Following the completion of the transaction, the director directly owned 855,842 shares in the company, valued at $9,628,222.50. This trade represents a 8.95% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Bryan Giles sold 5,000 shares of the company's stock in a transaction on Monday, June 29th. The shares were sold at an average price of $12.13, for a total transaction of $60,650.00. Following the completion of the transaction, the chief financial officer owned 146,931 shares in the company, valued at approximately $1,782,273.03. This represents a 3.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders acquired 3,352,161 shares of company stock worth $42,458,664. Company insiders own 30.85% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of AVO. Capital Advantage Inc. acquired a new stake in Mission Produce during the 2nd quarter worth approximately $311,000. Squarepoint Ops LLC bought a new stake in shares of Mission Produce in the second quarter valued at approximately $2,836,000. Arizona State Retirement System grew its position in 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 buying an additional 2,628 shares in the last quarter. Corient Private Wealth LP increased its stake in Mission Produce by 660.8% during the 2nd quarter. Corient Private Wealth LP now owns 213,417 shares of the company's stock worth $2,516,000 after acquiring an additional 185,366 shares during the period. Finally, California State Teachers Retirement System raised its holdings in Mission Produce by 1,595.3% in the 2nd quarter. California State Teachers Retirement System now owns 726,747 shares of the company's stock valued at $8,568,000 after acquiring an additional 683,878 shares in the last quarter. 63.57% of the stock is owned by institutional investors.

Mission Produce Trading Up 4.9%

The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.12 and a current ratio of 1.91. The company has a market capitalization of $1.19 billion, a price-to-earnings ratio of 42.13 and a beta of 0.48. The firm has a fifty day moving average price of $12.92 and a 200-day moving average price of $12.90.

About Mission Produce

Mission Produce, Inc is a leading global supplier, packer and distributor of fresh avocados, serving retail, foodservice and industrial customers. The company manages a vertically integrated supply chain that spans sourcing, post-harvest handling, packing and ripening. Through proprietary ripening technologies and cold-chain logistics, Mission Produce delivers consistent quality and extended shelf life for its avocado offerings.

Founded in 1983 and headquartered in Oxnard, California, Mission Produce grew from a regional packing operation into a publicly traded company listed on the Nasdaq under the ticker AVO.

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