Calavo Insiders Bet Millions on a Rebound—And Get It

Calavo Growers, Inc. (CVGW:US) has been a cornerstone of California agriculture since 1924. Originally formed as the California Avocado Growers’ Exchange, the company has expanded well beyond avocados to become a global distributor of fresh produce and prepared foods. Today, from its Santa Paula headquarters, Calavo ships avocados, tomatoes, Hawaiian papayas, guacamole, and salsa across the U.S. and into international markets, building a reputation for freshness and supply chain reliability boasting a market capitalization of around $475 million.

Insider Buying Frenzy in April 2025

In a move that has caught the interest of the investing community, Calavo’s top brass has been on a buying spree. CEO and Chairman Lecil E. “Lee” Cole made three significant open-market purchases between April 11 and April 15, 2025:

• On April 11, Cole bought 21,070 shares at an average price of $23.73, investing nearly $500,000.

• On April 14, he followed up with a 38,155-share purchase at $24.60, totaling over $938,000.

• The next day, he doubled down with a 40,775-share buy at $24.57, adding another $1 million to his stake.

In total, Cole invested over $2.4 million into Calavo stock in just five days, bringing his direct holdings to 615,000 shares.

He wasn’t alone. Executive Vice President Michael A. Browne acquired 11,000 shares in two trades earlier in April, while CFO James E. Snyder picked up 3,213 shares on April 10, spending $335,000 combined. The coordinated timing and volume of these insider buys send a strong message to the market.

Why Insider Buys Matter—Especially This One

Insider buying is often seen as one of the strongest signals of executive confidence. These are individuals with firsthand knowledge of company performance, challenges, and future prospects. When they purchase stock with their own money, it implies they believe the market is underestimating the company’s value.

Lecil Cole has long been a pivotal figure at Calavo. As CEO and Chairman, he’s led the company through expansion, innovation, and tough cycles. His decision to invest over $2 million at this juncture indicates he sees a clear upside in the company’s trajectory—and is willing to back that belief personally.

Strong Financials Add Weight to the Signal

The insider buying spree comes on the heels of a strong quarterly performance. For the first quarter of 2025, Calavo reported net sales of $154.4 million, a 21% increase from the same period last year. Gross profit surged to $15.7 million from $10.8 million, with much of that growth coming from the Fresh segment, which includes avocados.

Adding to the positive outlook, the company recently announced a $25 million stock repurchase program. A buyback initiative not only reflects confidence from the board but also enhances shareholder value by reducing share count and signaling financial health.

Taken together, the insider trades, strong quarterly results, and buyback plan suggest a coordinated belief within Calavo’s leadership: the company is turning a corner. For investors, it’s a moment worth watching. Insider buying doesn't guarantee future stock performance—but when seasoned executives start placing million-dollar bets on their own company, it's usually not without reason. And in this case, stock has already surged by more than 10% since their purchases, proving their timing right.