Calavo Growers, Inc. Announces $25 Million Stock Repurchase Program
Rhea-AI Summary
Calavo Growers (CVGW) has announced a $25 million stock repurchase program authorized by its Board of Directors. The program, effective until March 18, 2027, demonstrates the company's confidence in its long-term strategy and financial position.
The repurchases can be executed through open-market transactions, privately negotiated deals, or Rule 10b5-1 trading plans. The timing, volume, and pricing will be determined by management based on market conditions, financial position, regulatory requirements, and strategic considerations.
According to CEO Lee Cole, the program reflects their commitment to shareholder value while maintaining flexibility for strategic growth initiatives and operational improvements, supported by their strong balance sheet and expected cash flow generation.
Positive
- Authorization of $25 million stock repurchase program indicates financial strength
- Strong balance sheet and robust liquidity position
- Expected positive cash flow generation
- Program demonstrates confidence in long-term strategy
Negative
- Buyback reduces cash available for strategic investments
- Program size relatively modest compared to market cap
News Market Reaction
On the day this news was published, CVGW gained 3.95%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Strong Balance Sheet and Robust Liquidity Position Company for Buybacks to Enhance Shareholder Value
SANTA PAULA, Calif., March 18, 2025 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global leader in the avocado industry and provider of value-added fresh food (the “Company” or “Calavo”), today announced that its Board of Directors has authorized a share repurchase program of up to
“This repurchase program underscores our confidence in our long-term strategy, financial position, and ability to drive shareholder value,” said Lee Cole, President and CEO of Calavo. “Together with our strong balance sheet, expected cash flow generation, and robust liquidity position, this repurchase program demonstrates our commitment to our shareholders while maintaining our flexibility to invest in strategic growth initiatives and operational improvements.”
The Company is authorized to repurchase up to
About Calavo Growers, Inc.
Calavo Growers, Inc. (Nasdaq: CVGW) is a global leader in the processing and distribution of avocados, tomatoes, papayas, and guacamole. Founded in 1924, Calavo operates a vertically integrated business model, serving retail grocery, foodservice, club stores, and food distributors worldwide. Headquartered in Santa Paula, California, Calavo maintains operations throughout the U.S. and Mexico. Learn more at www.calavo.com.
Forward-Looking Statements
This press release contains forward-looking statements, including expectations regarding stock repurchases, financial performance, and future business strategies. These statements are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to Calavo’s most recent Form 10-K and Form 10-Q filings with the Securities and Exchange Commission for a discussion of these risks.
Investor Contact
Julie Kegley, Senior Vice President
Financial Profiles, Inc.
calavo@finprofiles.com
310-622-8246
FAQ
How much is Calavo Growers' (CVGW) new stock buyback program worth?
When does CVGW's stock repurchase program expire?
How will Calavo Growers implement its stock buyback program?
What factors will determine CVGW's stock repurchase timing and volume?
