Clifford Sosin, a major owner of At Home Group (HOME), recently picked up nearly 370,000 shares in transactions over two different days. The buys came to a total just under $6 million, and increases his holdings to just over 10.8 million shares.
This marks the first buy at the home décor retailer chain since November. Insiders have otherwise been shares, including massive sales from another 10 percent owner and C-suite executives.
The company, which is not yet profitable, has seen shares rally 253 percent in the past year and more than double that off of its March lows. Stay-at-home trends have benefitted home décor sales in 2020, and insiders buying now likely expect that move to continue in 2021.
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While the trend could possibly slow this year, shares could benefit from the fact that nearly 24 percent of the stock’s float of shares is being held short. A possible short-squeeze could move share higher. Shares are up nearly 20 percent in the past few weeks, indicating that a possible squeeze is already underway.
Action to take: Shares look too volatile to buy here. Investors interested in the space should wait for a pullback to $15—and try not to be too disappointed if they don’t get it.
For traders, the June 2021 $20 calls, trading for about $4.45, is an inexpensive way to potentially profit from a short squeeze. Traders should look for high double-digit returns, but if the share price rally starts to fizzle out, look to take profits quickly.