Nina Capital Holdings, a major holder of Petmed Express (PETS), recently bought 25,000 shares. The buy increased the fund’s position by 1%, and came to a total cost of $124,375.
The fund also made three buys in December, picking up 132,000 shares at a cost of over $700,000. A company director was also a buyer of 60,000 shares last December, paying over $324,000 to do so.
Overall, Petmed Express insiders own 16.1% of shares.
The online pet pharmacy is down 30% over the past year, far underperforming the rallying market.
Operationally, shares have had a mixed year. Revenues declined by 16% over the past year, but overall earnings have surged by 225%.
Typically, it’s better to see growing revenues, since it’s revenues that translate into earnings, barring activities like improving costs on the back-end. Until Petmed Express can show improving revenues, shares may continue struggle.
Action to take: Despite the operational challenges, shares have started to trend higher since the summer.
If Petmd Express is in the early stages of improving its outlook, shares may continue to build on their momentum of the past few months, making for a speculative trade.
For traders, with the share price trending higher, a call option trade may see better returns. The June $5 calls, last trading for about $0.90, could see mid-to-high double-digit returns or better in the months ahead.
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 company mentioned in this article.