Utz Insiders Signal Value With November Buys

Utz (NYSE: UTZ) insiders conspicuously purchased nearly $600,000 in shares of company stock in early November as its price retreated to a 52-week and multi-year low. This well-timed insider activity suggests strong internal confidence in the company's long-term trajectory.

At just around $10, UTZ shares are trading near levels not seen before the COVID pandemic. However, the company's size has doubled since then, making the current price appear highly discounted. If the stock were to return to pre-pandemic valuation levels, it could rise by 100% or more.

Attractive Valuation Points to Long-Term Upside

UTZ stock trades at approximately 10 times the 2025 projected earnings, a low-end valuation on the consumer staples spectrum. Looking further ahead, long-term forecasts suggest a multiple in the mid-single-digit range, supporting the case for significant upside potential. 

Who bought UTZ stock in November and why? Buyers include the CEO, a director, two executive vice presidents, and a major 10% shareholder (the Utz founding family investment entity). Together, they spent just under $600,000, pushing insider ownership to 15%. Institutions, which own a large majority of the float, resumed buying in Q3 after earlier selling pressure and appear positioned to continue building exposure given the stock's compelling value, yield, and growth outlook.

Utz Brands: Slow, Steady, Profitable Growth 

Utz Brands' outlook anticipates gradual, steady growth and margin improvement over time. The consensus tracked by InsiderTrades forecasts a modest single-digit revenue compound annual growth rate (CAGR) with earnings growing at a low-double-digit pace through the middle of the next decade. Among the drivers are territorial expansion, including the recent decision to expand in California, and market penetration. 

The company has been gaining share in salty snacks, which positions it for sustainable growth and as an acquisition target for larger staple businesses. Its portfolio of well-known brands would benefit from a larger company’s distribution network, and an acquisition could unlock cost savings for both. Potential buyers include Hostess and PepsiCo, which is currently the largest snack company by revenue and commands the lion's share of the salty snack category. 

The Q3 earnings results validated the investment thesis. Utz posted a 3.4% revenue increase, with salty snack sales rising 5.8%. Adjusted gross margin expanded by 210 basis points, contributing to a 13.2% rise in adjusted net income, a 9.5% increase in earnings per share (EPS), and strong positive cash flow.

As it stands in mid-November, Utz Brands yields about 2.4% and pays a reliable dividend with distribution growth expected. The payout is about 30% of the earnings outlook, earnings growth is in the forecast, and the balance sheet is healthy. Highlights at the end of Q3 included increased debt, offset by asset gains and low leverage, with total liabilities running just over 1.5 times equity. Regarding distribution growth, the company has increased the payout each year since its initial public offering (IPO) and has achieved an aggressive 35% distribution CAGR in 2025. 

Utz Brands: Can Its Share Price Rebound? 

Despite insider confidence and improving fundamentals, UTZ shares remain stagnant, hovering near $10. This reflects a broader lack of buying catalysts in the near term. The next earnings release or macroeconomic shifts—such as interest rate cuts or easing recession fears—could spark a recovery. 

Should the Federal Reserve continue with rate reductions as expected, and the United States avoid a recession, Utz stock could benefit from a sector-wide revaluation. Until then, the stock is likely to trade sideways, offering an entry point for long-term investors eyeing value, income, and moderate growth.

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The article "Utz Insiders Signal Value With November Buys" first appeared on MarketBeat.