Yehuda Shmidman, a director at Express Inc (EXPR) recently started an initial stake with 5,424,783 shares. The cost came to just over $25 million.
Generally, company insiders haven’t been very active at the firm. This buy marks the first insider transaction over the past two years. Otherwise, company insiders were last active in mid-2021, when the company President and CFO were both modest sellers of shares.
Overall, insiders own 12.2 percent of the company.
Shares of the apparel retailer have been knocked down 70 percent over the past year. The company hasn’t turned a profit in that timeframe, and revenues declined by 8 percent.
The company also has a lopsided balance sheet, with over $860 million in debt compared to equity of about $70 million.
Action to take: Investors may want to wait on the sidelines here. Shares popped higher on the big insider buy. But without a turnaround or buyout offer, it’s likely that shares of the company will continue their long-term downtrend. That’s especially true with slower consumer spending.
For traders, the July $1.00 put, last going for about $0.20, can likely deliver mid-double-digit gains, as shares resume their move lower. Traders may want to gradually build a position, and use down days for the stock to take profits off the table.
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.