Insider Activity Report: 1-800-Flowers.com (FLWS)

Thomas Hartnett, President at 1-800-Flowers.com (FLWS), recently bought 25,000 shares. The buy increased his stake by 10 percent, and came to a total price of $152,250.

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  • He was joined by the company’s CFO, who bought 30,000 shares, paying just over $190,000. These mark the first two insider buys in just over a year, when Hartnett bought 25,000 shares at a price close to where the stock trades today.

    Overall, company insiders own 33 percent of shares.

    The flower delivery company is up 11 percent over the past year, slightly underperforming the overall market.

    Revenues have dropped nearly 20 percent in the same timeframe, and the company is not currently operating at a profit.

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  • However, 1-800-Flowers.com trades right near its book value, and at just 0.25 times its price to sales. That makes shares look like an inexpensive opportunity here.

    Action to take: Shares look like a value opportunity at current prices. If the company can improve its revenues and turn to profitability, shares could be in for a sizeable rally, especially with so many shares already held by insiders. At present, the company doesn’t pay a dividend.

    For traders, the December $8 calls, last going for about $0.50, could see mid-double-digit gains on a move higher in shares in the months ahead.

     

    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.

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