Marcus Lemonis, a director at Overstock.Com (OSTK), recently bought 33,000 shares. The buy is an initial stake for the director. The purchase came to a total cost just over $493,000.
That’s the second buy since August, when another director bought 2,052 shares, paying just over $50,600. And late last year, the company CEO and a third director were also buyers of shares. A few directors sold shares earlier this year, following the exercise of stock options.
Overall, company insiders own about 1.3 percent of shares.
The online retailer is down over 40 percent in the past year. Revenues are off 20 percent, and Overstock is reporting losses.
On the plus side, shares now trade at less than half their price to sales ratio, and the company has a cash-rich balance sheet that more than covers its current debt.
Action to take: Shares could return more than the overall market in the coming weeks on a general market rebound. If the company can move towards profitability, then shares could be in for a bigger long-term move.
For traders, shares are tending lower but look oversold in the short-term.
The January 2024 $17.50 calls, last going for about $2.20, could see high-double-digit returns in the coming months on a bounce higher in shares. Traders will want to take profits well before expiration.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.