CEO, CIO, CFO, and head of manufacturing, pick up shares.
On Thursday, August 29th, Michael McClaflin, CIO at Flexsteel Industries (FLXS)picked up 2,350 shares. The total price came to just under $32,000, and represents his first purchase of shares at the company.
He was joined by Carl Hayden, vice president of manufacturing, who bought 2,000 shares, also starting a stake at the company and paying $27,000 to do so. CFO Marcus Hamilton also joined in, buying 2,300 shares and increasing his stake by 26 percent.
- Why April 27th Could Set Off A “Tech Boom” In Stocks
Thanks to the rare convergence of three economic triggers, the clock is ticking down for a once in a lifetime wealth building opportunity.
Last but not least, CEO Jerald Dittmer bought 5,000 shares, at a cost just under $67,000. Insiders have only been buyers of shares year to date, and the last insider sales occurred in 2017 at prices 70 percent higher than where shares currently trade.
Flexsteel Industries manufactures, imports and markets residential and contract furniture products in the United States, including sofas, chairs, beds, tables, desks and chairs.
Action to take: With shares down 60 percent in the past year, and with a cluster of large insider buys, there could be some attractive upside in shares here, either from the company turning around on sales or profitability, or going private.
With no debt on the balance sheet, nearly $3 per share in cash, and a share price of $15, the company looks attractive as a potential buyout candidate. Investors should consider shares under $15, where they can get a 6 percent dividend yield to wait. The company is too small for options trades.