Fund 1 Investments, a major holder of Tilly’s (TLYS), recently bought 130,302 shares. The buy increased the fund’s position by 2 percent, and came to a total cost of $936,186.
This marks the fund’s first buy of the year. The fund was heavily active throughout 2023, buying shares steadily over a dozen times. The company’s CFO also bought 3,400 shares last year, paying just over $21,000 to do so. And two directors made small sales.
Overall, Tilly’s insiders own 2.5 percent of shares. Institutional holders own nearly all the float.
The specialty clothing retailer is down 20 percent over the past year, in a move reverse that of the rest of the market.
Tilly’s struggled operationally as well las year, with revenues dropping 6 percent. And the company isn’t profitable right now.
Action to take: Tilly’s shares have been trending lower since August. They may move to re-test last year’s June low under $6.50 in the coming weeks.
Interested investors can likely buy shares at a far better price with a little patience.
For traders, the current downtrend is more likely to drive returns than the recent insider buys.
The July 2024 $7.50 puts, last going for about $1.45, are already slightly in-the-money. Traders may want to take profits should shares get back to their old 52-week lows.
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.