Fresh Del Monte Produce Inc. (NYSE:FDP) has reported a recent transaction involving Jesus Rodriguez Calvo, the company's Senior Vice President of North American Sales & Marketing, who sold 2,402 ordinary shares at a price of $24.59 per share. The total value of the transaction amounted to $59,065.
The sale, which took place on March 14, 2024, was disclosed in a regulatory filing with the Securities and Exchange Commission. Following this transaction, Calvo's direct holdings in the company's ordinary shares dropped to zero, indicating a complete divestment of his previously held stock.
While the transaction involved a sale of non-derivative securities, the filing also contained information about derivative securities, specifically Dividend Equivalent Units (DEUs), Restricted Stock Units (RSUs), and Performance Stock Units (PSUs). These units represent rights to receive ordinary shares of Fresh Del Monte Produce Inc. under certain conditions and performance criteria.
According to the footnotes in the filing, the DEUs are subject to the same restrictions and vesting or performance criteria as the underlying RSUs and PSUs to which they are related. The RSUs convert to ordinary shares on a one-for-one basis and have different vesting schedules, with some vesting as far out as 2026. The PSUs also convert on a one-for-one basis and are contingent upon meeting minimum performance criteria, with vesting periods extending to 2027.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's stock value and future performance. The sale by Calvo is a notable event, as it represents a significant change in his investment position in the company.
Fresh Del Monte Produce Inc. is an agricultural company specializing in the production and distribution of fresh produce. The company is incorporated in E9 and has its fiscal year-end on December 29. It is listed on the New York Stock Exchange under the ticker symbol FDP.
InvestingPro Insights
Amidst the insider transaction at Fresh Del Monte Produce Inc., investors are keen on understanding the company's financial health and future prospects. According to InvestingPro data, Fresh Del Monte has a market capitalization of $1.17 billion and is trading at a low Price / Book multiple of 0.62 as of the last twelve months ending Q4 2023. This suggests the company's stock may be undervalued compared to its book value, potentially offering an attractive entry point for value investors.
The company's dividend yield stands at an impressive 4.02%, with a noteworthy dividend growth of 66.67% in the same period. This aligns with one of the InvestingPro Tips highlighting Fresh Del Monte's history of raising its dividend for four consecutive years. Moreover, the company has maintained dividend payments for 15 consecutive years, which may interest income-focused investors seeking stable dividend-paying stocks.
Another InvestingPro Tip points out that the company's net income is expected to grow this year. Analysts predict the company will be profitable this year, which could signal a turnaround from the previous twelve months where the company was not profitable. This anticipated improvement in profitability, alongside the strong free cash flow yield implied by its valuation, could be a catalyst for stock appreciation.
For readers seeking further insights, there are additional InvestingPro Tips available, which can be accessed through InvestingPro's detailed analysis platform. For example, the platform includes analysis on Fresh Del Monte's gross profit margins and revenue valuation multiples. Investors interested in a deeper dive can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a comprehensive set of tools and data to inform their investment decisions.
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