Calavo Growers CEO Purchases Millions in Company Shares

Calavo Growers stock (ticker: CVGW) received a significant boost recently when CEO Lee E. Cole revealed his purchase of millions of dollars’ worth of shares in the avocado producer.

The company’s stock had remained relatively stagnant during the first half of 2023. However, in mid-March, Calavo announced that Cole, who previously served as president and CEO from 1999 until his retirement in January 2020, would resume those positions for an additional three years. His primary objective is to “return the company to a position of growth and shareholder value creation.”

In April 2022, Calavo implemented a major organizational change by splitting into two distinct reporting segments. The “grown” segment is now dedicated to fresh avocados, tomatoes, and papayas, while the “prepared” segment focuses on cut fruits and vegetables, ready-to-eat sandwiches, and other products sold to retail and food services.

Despite this strategic shift, Calavo stock struggled amid falling avocado prices. In fact, the company’s shares dropped by 31% in 2022, while the S&P 500 index experienced a 20% decline.

On July 12-13, Cole purchased 75,000 Calavo shares, totaling $2.3 million at an average price of $30.34 per share. As a result of this transaction, Cole now owns 515,000 shares. Notably, this recent disclosure led to an increase in the company’s stock price, generating a year-to-date gain of over 20%.

While Cole opted not to comment on his stock purchase, it is worth mentioning that his last open-market acquisition of Calavo stock took place in March. During that period, he spent $2.6 million to obtain 100,000 shares at an average price of $26.12 per share.

It’s important to note that the disclosure of stock trades by corporate executives, board members, and prominent figures is a regular feature covered by ‘s Inside Scoop. Such insiders, as well as significant shareholders, politicians, and others, are required to report their stock transactions to the Securities and Exchange Commission or other regulatory groups.