Manufacturers Life Insurance Boosts Stake in Calavo Growers Amid Insider Buying Surge

The Manufacturers Life Insurance Company significantly increased its stake in Calavo Growers, Inc., purchasing 24,445 shares valued at approximately $623,000 during the fourth quarter, according to recent SEC filings. This investment now represents 0.14% ownership in Calavo Growers. Other institutional investors also made notable transactions, including R Squared Ltd, Van ECK Associates Corp, KLP Kapitalforvaltning AS, Aquatic Capital Management LLC, and Tower Research Capital LLC, demonstrating varied activity in the stock during the same period. Hedge funds and other institutional investors collectively own over 81% of Calavo Growers shares, indicating strong institutional interest in the company.

Within the company, insider activity includes significant stock purchases by CFO James E. Snyder and CEO Lecil E. Cole, increasing their holdings by 165% and over 7%, respectively. Insider buying totaled over 73,000 shares worth nearly $1.8 million during the last quarter, with insiders collectively owning over 7% of the company's shares. These transactions reflect confidence from executive leadership in the company’s prospects.

Calavo Growers, trading under NASDAQ:CVGW, operates predominantly in the marketing and distribution of avocados and other perishable foods through its Grown and Prepared segments. The company sources products from multiple countries, including the U.S., Mexico, Peru, and Colombia, servicing diverse retail and wholesale channels. Financial metrics show a market capitalization near $467 million, a low debt-to-equity ratio of 0.02, and current liquidity ratios indicating sound financial health.

The company also maintains shareholder returns through dividends; its recent quarterly dividend of $0.20 per share translates to a 3.06% annual yield. However, the payout ratio exceeds 140%, which may warrant closer analysis regarding sustainability. Calavo Growers' stock price has shown some volatility but remains within a range reflective of market and sector conditions.

Overall, the increased institutional and insider buying, combined with steady dividend payments and a balanced financial position, underscore Calavo Growers’ active positioning in the agricultural and food distribution sector. These dynamics may be of interest to insurance investment strategists and corporate risk managers monitoring market activity and potential exposures in agribusiness sectors.