Gary Cohen, President and CEO of iRobot Corp (IRBT), recently bought 2,050 shares. The buy increased his stake by over 1,000%, and came to a total cost of $25,189.
This is the first insider buy in over two years. Otherwise, company executives and directors have been sellers of shares, including one director who sold over $2 million in shares back in February. iRobot’s prior CEO was also a seller of shares at a price nearly four times higher from where the stock trades today.
Overall, iRobot insiders own 2.1% of shares.
The home robotics manufacturer has seen shares slide by two-thirds over the past year. Regulatory issues kept tech giant Amazon (AMZN) from acquiring the company outright.
iRobot has struggled operationally over the past year. The company hasn’t turned a profit and revenues dropped 6%.
However, the company could be a prospective buyout opportunity for another company. Shares trade at just 5 times revenues, and the company trades at about one-third its price to sales.
Action to take: Shares have been trending higher over the past few months after hitting their recent lows. The stock is likely to keep trending higher over time from here, making for a contrarian investment opportunity today.
For traders, the July $14 calls, last trading for about $0.65, could see mid-double-digit returns on a continued rally higher. Traders may want to take quick profits on any large one-day rally for shares.