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Central Garden & Pet Company Ups Share Buyback Authorization
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Key Takeaways
CENT added $100M to its share repurchase authorization, signaling confidence in its outlook.
CENT bought 660,000 shares for $18.5M in Q1 fiscal 2026.
CENT ended Q1 with $721M in cash and reaffirmed fiscal 2026 EPS target of $2.70 .
Central Garden & Pet Company (CENT - Free Report) announced that its board of directors increased its share repurchase authorization, signaling a commitment to enhancing shareholder value. The company is now authorized to repurchase an additional $100 million of its common stock and Class A common stock. Management stated that the company’s shares are currently undervalued, making this an opportune time to repurchase stock.
While the repurchase program has no expiration date, the company retains the flexibility to limit, suspend, or terminate it at any time without prior notice. The move underscores Central Garden & Pet’s confidence in its financial position and prospects, a signal likely to reinforce investor sentiment and potentially support the stock price.
In the first quarter of fiscal 2026, Central Garden & Pet repurchased approximately 660,000 shares for $18.5 million, reflecting management’s opportunistic approach to capital returns. As of the quarter end, $28 million remained available under the existing share repurchase authorization, providing additional flexibility for future buybacks.
What’s More on CENT?
Central Garden & Pet is advancing a multi-year transformation plan to strengthen its leadership in pet consumables, and lawn and garden categories through innovation, portfolio reshaping,and supply-chain simplification. Management continues to execute its Cost and Simplicity agenda, supporting margin resilience and reaffirming its fiscal 2026 earnings per share target of $2.70 or higher.
The Pet segment remains a steady anchor, benefiting from consumables momentum and market share gains, while the Garden segment is positioned for a more significant seasonal recovery as shipment timing normalizes. Management reiterated its intent to balance share repurchases with an increasing focus on M&A, supported by a robust balance sheet and ample cash reserves.
At the end of the first quarter of fiscal 2026, Central Garden & Pet reported cash, cash equivalents and short-term investments of $721 million, reflecting a year-over-year increase of $103 million despite the seasonal working capital build and the acquisition of Champion USA.
Central Garden & Pet’s Price Performance & Valuation
CENT shares have gained 19.7% in the past month compared with the industry’s growth of 9.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Central Garden & Pet trades at a forward price-to-earnings ratio of 13.60X, down from the industry’s average of 18.23X. It has a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Central Garden & Pet’s current and next fiscal years has been upbound by 5 cents and 2 cents per share to $2.80 and $2.90, respectively, in the past 30 days.
Image Source: Zacks Investment Research
CENT’s Zacks Rank & Other Key Picks
Central Garden & Pet currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks are as follows.
Interparfums, Inc. (IPAR - Free Report) is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. It currently carries a Zacks Rank #2. IPAR has a trailing four-quarter earnings surprise of 5%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for IPAR’s current financial-year sales and EPS calls for growth of 2.5% and a decline of 0.8%, respectively, from the year-ago reported numbers.
Sprouts Farmers Market, Inc. (SFM - Free Report) operates in a highly fragmented grocery store industry, with a unique model featuring fresh produce, a food section and a vitamin department focused on overall wellness. The company currently has a Zacks Rank of 2.
SFM delivered a trailing four-quarter earnings surprise of 10%, on average. The Zacks Consensus Estimate for SFM’s current financial-year earnings and sales indicates growth of 40.5% and 14.2%, respectively, from the year-ago reported figures.
Ollie's Bargain Outlet Holdings (OLLI - Free Report) is a value retailer of brand-name merchandise at drastically reduced prices. The company currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 5.2%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current fiscal-year sales and EPS suggests growth of 16.7% and 17.7%, respectively, from the year-ago reported numbers.
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Central Garden & Pet Company Ups Share Buyback Authorization
Key Takeaways
Central Garden & Pet Company (CENT - Free Report) announced that its board of directors increased its share repurchase authorization, signaling a commitment to enhancing shareholder value. The company is now authorized to repurchase an additional $100 million of its common stock and Class A common stock. Management stated that the company’s shares are currently undervalued, making this an opportune time to repurchase stock.
While the repurchase program has no expiration date, the company retains the flexibility to limit, suspend, or terminate it at any time without prior notice. The move underscores Central Garden & Pet’s confidence in its financial position and prospects, a signal likely to reinforce investor sentiment and potentially support the stock price.
In the first quarter of fiscal 2026, Central Garden & Pet repurchased approximately 660,000 shares for $18.5 million, reflecting management’s opportunistic approach to capital returns. As of the quarter end, $28 million remained available under the existing share repurchase authorization, providing additional flexibility for future buybacks.
What’s More on CENT?
Central Garden & Pet is advancing a multi-year transformation plan to strengthen its leadership in pet consumables, and lawn and garden categories through innovation, portfolio reshaping,and supply-chain simplification. Management continues to execute its Cost and Simplicity agenda, supporting margin resilience and reaffirming its fiscal 2026 earnings per share target of $2.70 or higher.
The Pet segment remains a steady anchor, benefiting from consumables momentum and market share gains, while the Garden segment is positioned for a more significant seasonal recovery as shipment timing normalizes. Management reiterated its intent to balance share repurchases with an increasing focus on M&A, supported by a robust balance sheet and ample cash reserves.
At the end of the first quarter of fiscal 2026, Central Garden & Pet reported cash, cash equivalents and short-term investments of $721 million, reflecting a year-over-year increase of $103 million despite the seasonal working capital build and the acquisition of Champion USA.
Central Garden & Pet’s Price Performance & Valuation
CENT shares have gained 19.7% in the past month compared with the industry’s growth of 9.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Central Garden & Pet trades at a forward price-to-earnings ratio of 13.60X, down from the industry’s average of 18.23X. It has a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Central Garden & Pet’s current and next fiscal years has been upbound by 5 cents and 2 cents per share to $2.80 and $2.90, respectively, in the past 30 days.
Image Source: Zacks Investment Research
CENT’s Zacks Rank & Other Key Picks
Central Garden & Pet currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks are as follows.
Interparfums, Inc. (IPAR - Free Report) is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. It currently carries a Zacks Rank #2. IPAR has a trailing four-quarter earnings surprise of 5%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for IPAR’s current financial-year sales and EPS calls for growth of 2.5% and a decline of 0.8%, respectively, from the year-ago reported numbers.
Sprouts Farmers Market, Inc. (SFM - Free Report) operates in a highly fragmented grocery store industry, with a unique model featuring fresh produce, a food section and a vitamin department focused on overall wellness. The company currently has a Zacks Rank of 2.
SFM delivered a trailing four-quarter earnings surprise of 10%, on average. The Zacks Consensus Estimate for SFM’s current financial-year earnings and sales indicates growth of 40.5% and 14.2%, respectively, from the year-ago reported figures.
Ollie's Bargain Outlet Holdings (OLLI - Free Report) is a value retailer of brand-name merchandise at drastically reduced prices. The company currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 5.2%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current fiscal-year sales and EPS suggests growth of 16.7% and 17.7%, respectively, from the year-ago reported numbers.