Brian Murphy, CEO of American Outdoor Brands (AOUT), recently bought 2,718 shares. The buy increased his holdings by nearly 3 percent, and came to a total purchase price of just under $50,000.
He was joined by three directors who bought on the same day. One bought 1,000 shares, another bought 5,500 shares, and one bought 5,000. And the company CFO bought 2,500 shares at the same day at around the same price.
These mark the first insider buys in 3 months, when the same group of insiders and directors also bought shares. Overall, insiders own 4.4 percent of the company.
The company, which boasts a number of brands for camping, hiking, and hunting, is up about 15 percent in the past year. That’s a solid return, given that revenue is off 10 percent and earnings are down by over one-third in the past year.
Action to take: While the company’s recent performance hasn’t been stellar, shares do trade at 13 times earnings, and the company has no net debt on its balance sheet, meaning it can handle any rough times in the economy.
A potential move higher in shares could occur in the coming months. That could bode well for a call option trade. The April $22.50 calls, last going for about $0.95, offer a leveraged upside to any move higher in shares in the coming months.
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.