Steven Downing, a director at VOXX International (VOXX), recently bought 1,568,750 shares. The buy increased his stake by 90 percent, and came to a total cost of $15.69 million.
This follows up on a 1.57 million share pickup made by the director back in October. Other company directors have been buyers in the past year, albeit at a far smaller size. On the sell side, the company’s President has been a sizeable seller of shares in recent months.
Overall, VOXX insiders own 45.2 percent of shares.
The automotive electronics manufacturer rallied 10 percent last year, returning about half as much as the S&P 500.
Operationally, VOXX has struggled, with losses over the past year and a 10 percent drop in revenues.
From a value standpoint, shares trade at 0.5 times their price to sales, and at a 25 percent discount to their book value.
Action to take: Shares look like a value play at current prices, and the stock has been in a long-term uptrend for months. That suggests further gains ahead, although it may take time to play out.
Given VOXX’s small market cap, investors may want to allocate a smaller amount of capital to this position.
For traders, the May 2024 $10.00 calls, last going for about $2.00, could see mid-double-digit returns. The options are already about $0.70 in-the-money.
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 company mentioned in this article.