Village Farms International, Inc. (NASDAQ:VFF) Chief Financial Officer Stephen C. Ruffini has recently made a significant investment in the company's stock. According to the latest filings, Ruffini purchased 20,000 common shares at an average price of $0.92 per share, amounting to a total of $18,400.
The transaction, which took place on September 26, 2024, was part of a series of open market purchases with prices ranging from $0.9099 to $0.9298. The reported price reflects the weighted average purchase price of these transactions. Following these acquisitions, Ruffini now directly owns a total of 659,200 common shares of Village Farms International.
In addition to his direct holdings, Ruffini has indirect ownership through The Ruffini Family Revocable Trust, where he is the trustee, and an Individual Retirement Account (IRA). These indirect holdings further demonstrate his vested interest in the company's performance and future.
Investors often view insider purchases as a sign of confidence in the company's prospects and management's belief in the stock's value. With the CFO's recent purchase, shareholders may take note of the commitment shown by Ruffini to Village Farms International's growth and success.
In other recent news, Village Farms International reported significant growth in its second quarter, with total net sales up by 45% year-over-year to $56 million. This increase was largely due to robust performance in the Canadian cannabis sector and the fresh produce market, despite a net loss of $23.5 million and a negative EBITDA of $3.6 million. The company also achieved positive cash flow from operations of CAD7.2 million.
Village Farms also announced a new employment agreement with its CEO, Michael A. DeGiglio, extending to August 15, 2027. The contract sets DeGiglio's minimum annual base salary at $1,022,880, with potential increases at the company's discretion and incentive compensation tied to the company's annual bonus program.
On the international front, Village Farms experienced growth in export sales, particularly from Germany and the UK. Despite regulatory challenges in the US cannabis market, the company is optimistic about its growth potential in the Canadian and EU cannabis markets. Village Farms is actively seeking to expand its cannabis cultivation capacity in Canada, aiming to be a top player in each market segment, with a particular focus on vapes in Canada and a cautious approach to its EU market expansion, especially in Germany.
InvestingPro Insights
The recent insider purchase by Village Farms International's CFO Stephen C. Ruffini aligns with several key insights from InvestingPro. According to InvestingPro data, Village Farms is currently trading at a low Price / Book multiple of 0.37, which could indicate that the stock is undervalued. This might explain why Ruffini sees an opportunity to increase his stake in the company.
However, investors should be aware that Village Farms faces some challenges. An InvestingPro Tip notes that the company suffers from weak gross profit margins, which is reflected in the latest data showing a gross profit margin of 17.04% for the last twelve months as of Q2 2024. Additionally, the company is not profitable over the last twelve months, with an operating income of -$17.01 million during the same period.
On a positive note, Village Farms has shown revenue growth of 11.2% over the last twelve months, with quarterly revenue growth of 19.39% in Q2 2024. This growth trajectory could be a factor in Ruffini's decision to invest further in the company.
It's worth noting that InvestingPro has identified 11 additional tips for Village Farms, which could provide more comprehensive insights for investors considering this stock. These tips, along with real-time financial metrics, are available to InvestingPro subscribers.
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