Insider Activity: USA Technologies Inc (USAT)

Major fund holder adds to stake.

Investment fund Hudson Executive Partners LP bought 143,200 shares of USA Technologies (USAT). Already a major holder with over 10 percent of shares, the $638,000 buy increases the fund’s holdings to over 8,339,170 shares.

This is the second buy from the fund following the purchase of 1 million shares back in August, at prices 26 percent higher than where shares currently trade. Insiders have otherwise been holding their shares in the past two years.

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  • USA Technologies provides wireless networking, cashless transactions, asset monitoring and other services to facilities electronic payment options, including products largely used in self-service and other unattended locations serving the small ticket and beverage and food vending industry.

    Action to take: With shares down 45 percent in the past year, and with the company currently losing money, the company looks somewhat attractive as a turnaround candidate, as the company has continued to grow earnings and revenue during that time. The payments industry is a dynamic one, and the company’s niche of small, unattended markets, could play out well over time given the growth there.

    Investors should buy shares as long as they’re under $5.00. Speculators may want to consider the March 2020 $5 call options, which are right at-the-money and should move dollar-for dollar higher with shares.