Laura G. Scheland, Vice President and Chief Legal Officer at Oil-Dri Corp of America (NYSE:ODC), recently reported a significant stock transaction. On October 18, Scheland sold 2,500 shares of common stock, with prices ranging from $69.08 to $69.40 per share, resulting in a total transaction value of $173,175. Following this sale, Scheland’s direct ownership stands at 15,340 shares.
Additionally, on October 19, Scheland acquired 3,500 shares of restricted stock as part of the company’s 2006 Long Term Incentive Plan. These shares are scheduled to vest fully on October 19, 2028. The acquisition was based on a closing price of $68.43 per share, amounting to a total value of $239,505. After these transactions, Scheland’s total direct ownership increased to 18,840 shares.
In other recent news, Oil-Dri Corporation of America achieved record consolidated net sales of $437.6 million for fiscal year 2024, marking a 6% increase from the prior year. This growth was bolstered by the successful integration of Ultra Pet, which added $4 million in net sales and $200,000 in pre-tax income in its initial quarter. Oil-Dri’s gross profit also reached a new high of $125 million, a 21% rise year-over-year.
The company expanded its distribution network, adding 5,700 points of distribution across 16 retailers for Cat’s Pride and Ultra brands. To further strengthen its financial position, Oil-Dri amended its credit agreement, raising its revolving line of credit to $75 million.
Analysts noted the firm’s growth trajectory, with the company taking 51 years to reach $100 million in sales, but only two years to exceed $400 million. Despite facing challenges in the agricultural and co-packaged coarse litter segments, Oil-Dri maintained a strong overall performance.
Looking forward, management outlined strategies to expand the private label crystal litter business and continue sales growth in fluid purification products, particularly in North America. Furthermore, Oil-Dri is exploring expansion opportunities in Brazil and targeting a $1 billion market in mycotoxin mitigation and gut health for food production animals.
InvestingPro Insights
Oil-Dri Corp of America (NYSE:ODC) has demonstrated strong financial performance and shareholder value, as evidenced by recent insider transactions and key financial metrics. According to InvestingPro data, the company boasts a market capitalization of $498.26 million and trades at an attractive P/E ratio of 12.81, suggesting a potentially undervalued stock.
InvestingPro Tips highlight ODC’s commitment to shareholder returns, noting that the company “has raised its dividend for 11 consecutive years” and “has maintained dividend payments for 50 consecutive years.” This long-standing dividend history aligns with the recent insider activity, potentially signaling management’s confidence in the company’s financial stability and future prospects.
The company’s financial health is further underscored by its profitability over the last twelve months and strong return over the past five years. With a dividend yield of 1.78% and a dividend growth rate of 6.9% in the last twelve months, ODC continues to reward its shareholders while maintaining a balanced financial approach.
For investors seeking more comprehensive analysis, InvestingPro offers 8 additional tips that could provide deeper insights into ODC’s investment potential. These additional tips, available through the InvestingPro product, could offer valuable context to the recent insider transactions and the company’s overall financial position.
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