Andrew Fulmer, CFO & Treasurer of American Outdoor Brands (AOUT), recently picked up 3,700 shares. The buy increased his holdings by just over 7.6 percent, and came to a total purchase price of just over $50,000.
This marks the second buy from company insiders in the past few weeks, following a 3,671 share buy from a company director, for a price of just under $50,000. Overall, company insiders have been regular and steady buyers, amounts ranging from 1,000 to 10,000 shares.
Overall, company insiders own about 4.2 percent of the sporting brands producer.
The stock has lost about half its value over the past year, as revenue has slid about 15 percent and earnings have declined by about 53 percent.
Action to take: The company is relatively small, with a market cap of just under $200 million following the drop in share price in the last year. And the company trades for 0.75 times its sales, and 0.66 times its book value, indicating that shares look like a relative value here. Investors may like shares for a rebound, although the stock doesn’t pay a dividend.
Traders may like the July $15 calls. Last going for about $1.00, they offer traders a low price for playing a move higher in company shares in the coming months. Traders can likely see mid-to-high double-digit returns as shares move higher.
Disclosure: The author of this article has no position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.