Why Shares of Mission Produce (AVO) Are Down Today

Recent Developments

Mission Produce (NASDAQ:AVO), a leading avocado supplier, experienced a 5.4% decline in its share price during the afternoon trading session after announcing its plan to purchase Calavo Growers (CVGW). The acquisition, valued at about $430 million, will be completed through a combination of cash and stock.

According to the agreement, Calavo shareholders will receive $27.00 per share, which is 26% higher than Calavo’s average share price over the past 30 days. The payout consists of $14.85 in cash and 0.9790 shares of Mission Produce for every Calavo share owned. It’s typical for the acquiring company’s stock to drop following such news, especially when a premium is paid and new shares are issued, as this can dilute existing shareholders’ stakes. Once the transaction is finalized, Mission Produce’s current shareholders are expected to hold roughly 80.3% of the merged company.

Market reactions can sometimes be exaggerated, and significant price drops may offer attractive entry points for investors seeking quality stocks. Considering this, could now be a favorable moment to invest in Mission Produce?

Market Perspective

Historically, Mission Produce’s stock has shown limited volatility, with only six instances of price swings exceeding 5% over the past year. Today’s notable decline suggests that investors view this acquisition as significant, though it may not fundamentally alter the company’s long-term outlook.

The most substantial movement in the past year occurred ten months ago, when shares dropped 15.9% following disappointing first-quarter (fiscal 2025) results. Despite strong revenue growth of 29%—driven by higher avocado prices and increased sales in the Marketing & Distribution division—expectations were high, and the results failed to impress Wall Street. The company also faced supply issues in Mexico, which could be exacerbated by ongoing trade tensions. While the quarter was generally positive, broader economic uncertainties continued to weigh on investor sentiment.

Since the start of the year, Mission Produce’s stock has risen 3.9%, currently trading at $12.03 per share—close to its 52-week peak of $13.20 reached in December 2025. An investor who purchased $1,000 worth of Mission Produce shares five years ago would now see that investment valued at $769.18.

Looking Ahead

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