B. Riley Financial, a major holder at Alta Equipment Group (ALTG), recently added 20,243 shares. The buy increased the fund’s stake by 0.3 percent, and came to a total purchase price of just under $205,000.
The fund has been a regular buyer of shares over the past few months. Plus, back in May, two directors and the company CEO were also buyers as well. The last insider sale occurred in late 2021.
Overall, company insiders own 21.7 percent of shares.
Shares of the construction rental equipment company are down about 13 percent over the past year, as the company has been unprofitable. However, revenue did rise over 23 percent in the past year.
Action to take: The company is highly leveraged, so investors may want to wait for an uptick in the economy before considering going long shares. The stock yields just over 2 percent, but that rate could tick up should prices drop in the coming weeks on rough economic news.
For traders, the January $12.50 calls, last going for about $0.70, could deliver high-double-digit returns. As with shares, it may be prudent to wait for a down day before buying. Traders could then take advantage of any short-term rally to sell the options for a quick, even single-digit profit.
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.