Michael Henry, CFO at Tilly’s (TLYS), recently picked up 2,300 shares. The buy increased his holdings by about 7 percent, and came to a total cost just under $16,000.
This is the CFO’s first buy since back in July, and following up on two more buys in June, following a big drop in the share price. These buys have occurred amid a backdrop of insider sales in the past year. Over the past three years, insider buys and sells have been a bit more even.
Overall, insiders own about 1.9 percent of shares.
The apparel retailer has seen shares get cut in half in the past year, amid weak inflation-adjusted consumer spending. Earnings are down 81 percent in the same timeframe, pushing the stock up to 20 times forward earnings from 8 times at the start of the year.
Action to take: Shares have slowed their decline in the past few weeks and could be nearing a medium or long-term bottom. However, it will take time for shares to head higher.
Patient investors can likely get another chance to buy near the 52-week low of $6.65 per share. Given the company’s fundamentals and balance sheet, it will likely see a solid rebound after that.
For traders, the January 2023 $10 calls are an at-the-money trade. Last going for about $0.80, they can likely deliver a mid-double-digit return before expiration.
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.