Cantaloupe Inc. Director Bergeron Acquires Over $2.1M in Shares

Cantaloupe Inc. (NASDAQ:CTLP) director Douglas Bergeron has recently made a notable investment in the company’s stock, acquiring shares valued at over $2.1 million. These transactions indicate a strong vote of confidence from one of the company’s directors regarding its future prospects.

On September 26, 2024, Bergeron purchased 13,866 shares for $7.15 each. He subsequently acquired 234,134 shares on September 27 and 36,000 shares on September 30 at prices ranging from $7.23 to $7.53, with a weighted average price of $7.41. The total expenditure for these shares reached approximately $2,100,834. Such significant purchasing activity by a director often serves as a positive signal to the market, suggesting that insiders believe in the company’s potential.

Following these acquisitions, Bergeron’s total holdings in Cantaloupe Inc. now amount to 462,319 shares. The company, recognized for its operations in the calculating and accounting machines sector, seems to enjoy solid backing from its board as it continues to navigate market challenges.

Insider transactions like Bergeron’s are closely monitored by investors and analysts, often interpreted as indicators of confidence in a company’s future performance. Bergeron’s recent purchases might reflect a favorable view of Cantaloupe Inc.’s intrinsic value.

In other developments, Cantaloupe, Inc. reported a 13% increase in total revenue, reaching $72.7 million in the fourth quarter of fiscal year 2024, with transaction revenue and subscription revenue rising by 16% and 14%, respectively. While the company slightly fell short of its full-year revenue targets, adjusted EBITDA surged by 91% to $34 million for FY 2024. Looking forward, Cantaloupe is targeting a revenue growth of 15-20% and an adjusted EBITDA increase of approximately 40% for FY 2025.

As part of its growth strategy, Cantaloupe has announced the acquisition of SB Software to bolster its presence in the European market. Additionally, the company has forged partnerships with AIR and Mastercard to advance automated retail solutions and digital advertising. For FY 2025, Cantaloupe projects revenue between $308 million and $322 million, alongside estimated GAAP net income of $22 million to $32 million, and adjusted EBITDA forecasted between $44 million and $52 million.

Furthermore, Cantaloupe has introduced a significant update to its Seed vending management system (VMS), featuring a modernized user interface, mobile optimization, and enhanced performance capabilities. This update aligns with the company’s ongoing commitment to refine its core products in response to the evolving needs of the vending, micro-market, and office coffee service sectors. These advancements reflect Cantaloupe’s strategic focus on revenue growth and market expansion.

Recent data has indicated that Cantaloupe’s revenue growth has been strong, showing a 10.24% increase year-over-year as of Q4 2024, reaching $268.6 million. This encouraging growth aligns with expectations for net income growth, which may have contributed to Bergeron’s decision to increase his stake in the company.

The company’s stock has also performed well, with an 18.72% total return over the past year, reflecting a stock price that is currently 93.43% of its 52-week high. However, investors should be mindful that Cantaloupe is trading at a relatively high earnings multiple, evidenced by a P/E ratio of 46.56, indicating that market participants have high growth expectations for the company.

This information underscores a significant investment by the director while also highlighting the company’s strong performance and outlook in the market.