Peter Eilers, Managing Director at AMVAC Netherlands BV, a subsidiary of American Vanguard Corp (NYSE:AVD), recently sold 3,000 shares of the company's common stock. The shares were sold on December 13 at a price of $5.35 each, totaling $16,049. Since then, the stock has declined to $4.66, trading near its 52-week low of $4.90. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment. Following this transaction, Eilers holds 38,177 shares directly. The sale was made to partially satisfy a tax liability in his home country. Despite current challenges, analysts maintain a positive outlook, forecasting profitability this year. The company has also demonstrated commitment to shareholder returns, maintaining dividend payments for 29 consecutive years.
In other recent news, American Vanguard Corporation has appointed Douglas A. Kaye, III as its new CEO, a move anticipated to spur growth and innovation. Kaye, with his extensive leadership experience from Albaugh, LLC, is expected to drive the company towards its goal of a 15% adjusted EBITDA margin and further expansion.
In terms of financial performance, American Vanguard has revealed an optimistic outlook for 2024, despite a challenging third quarter. The company projects an adjusted EBITDA target of $40 million to $50 million, with sales goals set between $565 million to $580 million. This optimism is further buoyed by a strong fourth quarter, traditionally favorable for its crop protection products.
The company's third-quarter results showed an adjusted EBITDA of $2 million on sales of $130.7 million, with a notable decrease in sales of key products Aztec and Folex. However, a significant decline in U.S. crop business sales was offset by a 17% increase in non-crop business sales.
These recent developments demonstrate American Vanguard's strategic response to current challenges and its focus on future growth and operational efficiency. The company anticipates a 15% adjusted EBITDA margin post-transformation, with savings from improved vendor management expected to double to $6 million annually. This is despite pressures from generic competitors, particularly on its Folex product.
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