Short Interest in American Vanguard Corporation (NYSE:AVD) Decreases By 70.7%

Key Points

• Short interest in American Vanguard fell sharply in June, dropping 70.7% to 238,225 shares from 813,914 shares two weeks earlier. That leaves just 0.9% of the company’s shares sold short and a very low 0.3 days-to-cover ratio.
• Insider buying continued, with Director Patrick E. Gottschalk purchasing 25,000 shares at $2.70 each in May. After the trade, he owned 191,705 shares, a 15% increase in his position.
• The company reported a wider-than-expected quarterly loss, posting EPS of -$0.14 versus analysts’ estimate of -$0.06, even though revenue came in slightly above expectations at $123.57 million. The stock was trading near $2.69, well below its 200-day average of $3.48.

American Vanguard Corporation (NYSE:AVD - Get Free Report) was the target of a significant drop in short interest during the month of June. As of June 30th, there was short interest totaling 238,225 shares, a drop of 70.7% from the June 15th total of 813,914 shares. Based on an average daily trading volume, of 705,640 shares, the days-to-cover ratio is currently 0.3 days. Currently, 0.9% of the shares of the company are sold short.

Insider Transactions at American Vanguard

In other news, Director Patrick E. Gottschalk bought 25,000 shares of the stock in a transaction on Tuesday, May 19th. The shares were purchased at an average cost of $2.70 per share, for a total transaction of $67,500.00. Following the completion of the purchase, the director directly owned 191,705 shares in the company, valued at $517,603.50. This represents a 15.00% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 5.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On American Vanguard

Several institutional investors have recently modified their holdings of the company. Strs Ohio bought a new stake in American Vanguard in the 1st quarter worth approximately $28,000. nVerses Capital LLC bought a new position in American Vanguard during the fourth quarter valued at approximately $42,000. R Squared Ltd bought a new position in American Vanguard during the first quarter valued at approximately $28,000. Virtu Financial LLC purchased a new position in shares of American Vanguard during the fourth quarter worth approximately $52,000. Finally, Jain Global LLC purchased a new position in shares of American Vanguard during the fourth quarter worth approximately $53,000. 79.00% of the stock is currently owned by institutional investors.

American Vanguard Price Performance

Shares of NYSE AVD traded up $0.03 during midday trading on Friday, hitting $2.69. 139,054 shares of the company's stock were exchanged, compared to its average volume of 463,570. The company has a current ratio of 2.32, a quick ratio of 1.41 and a debt-to-equity ratio of 1.39. The business's fifty day moving average price is $2.78 and its two-hundred day moving average price is $3.48. The company has a market cap of $76.82 million, a price-to-earnings ratio of -1.69 and a beta of 1.41. American Vanguard has a 12-month low of $2.05 and a 12-month high of $5.92.

American Vanguard (NYSE:AVD - Get Free Report) last announced its earnings results on Wednesday, May 6th. The basic materials company reported ($0.14) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.08). American Vanguard had a negative net margin of 8.71% and a negative return on equity of 4.13%. The company had revenue of $123.57 million for the quarter, compared to the consensus estimate of $120.00 million.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings cut American Vanguard from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, May 18th. One research analyst has rated the stock with a Sell rating, According to MarketBeat, the stock has an average rating of "Sell".

About American Vanguard

American Vanguard Corporation NYSE: AVD is a developer, manufacturer and marketer of specialty chemical products for crop protection, turf and ornamental care, and public health pest control. Headquartered in Newport Beach, California, the company offers a portfolio of insecticides, herbicides, fungicides and rodenticides designed for use across agricultural, turf and urban pest management applications. Its research and development efforts focus on novel chemistries and formulation technologies that address emerging pest resistance and regulatory requirements.

The company's product lines include emulsifiable concentrates, wettable powders, granular formulations, baits and liquid concentrates sold under proprietary brand names.

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