Andrea Weiss, a director at Bed Bath & Beyond Corp (BBBY), recently added 2,000 shares. The buy increased her holdings by about 3 percent, and came to a total purchase price just over $9,200.
The buy adds to two other director buys in the past month, as well as a 50,000-share pickup from the company’s Interim CEO. Over the past three years, insiders have been regular buyers of the stock, with only one insider sale occurring in July 2021.
Overall, insiders at the company own about 14.4 percent of shares.
The retailer has struggled in the past year, with a 25 percent revenue drop, combined with a lack of profitability. Shares are down a staggering 83 percent.
However, the company is now working on a turnaround, and trades for just under 0.1 times its price to sales ratio, a significant discount from an average closer to 0.4 in the past.
Action to take: The company looks like an interesting and low-priced rebound play here in the quarters ahead. If no rebound materializes, shares may still move higher given how oversold they’ve gotten. Investors may want to buy a small stake here, although the company doesn’t pay a dividend.
For traders, insider buying and oversold shares could lead to some surprise upside. The January $6 calls, last going for about $1.64 are a bit pricey, but could deliver high-double-digit gains or better on such a rebound in shares with less downside risk than owning the stock outright.
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.