Insider Activity Report: The Children’s Place (PLCE)

Jane Elfers, President and CEO at The Children’s Place (PLCE), recently bought 43,000 shares. The buy increased her stake by 13 percent, and came to a total cost of $1.01 million.

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  • The buy came a week after a director bought 1,500 shares, paying $57,750. Over the past two years, insider activity has been a bit more mixed, with more sales than purchases. Elfers was a big seller of shares two years ago when shares traded 4 times higher.

    Overall, company insiders own 6.3 percent of shares.

    Shares of the children’s apparel company are down about one third over the past year, but have nearly doubled since hitting a 52-week low in early June.

    The Children’s Place has been unprofitable over the past year, and revenues are down about 11 percent. However, shares trade at just 0.2 times their price-to-sales, and in the most recent quarter the stock went for about 7 times earnings.

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  • Action to take: Shares are trending higher, and could be oversold here if the company is moving back to profitability. There’s likely more upside ahead in the short-term for shares. At the moment, the stock doesn’t pay a dividend.

    For traders, the December $35 calls, last going for about $3.00, could see high double-digit gains on a further rally in shares. On a steep rally, they may trend even higher.

     

    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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