Insider Trading Report: Franchise Group (FRG)

Brian Khan, CEO of Franchise Group (FRG) recently bought 1 million shares of the company. The buy increased his holdings by 291 percent, and came to a total cost of $36 million.

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  • Insiders have been active buyers over the past year, including further purchases from the company CEO. The only insider sale in the past year occurred when a financial company with a significant stake sold off 757,000 shares.

    Overall, company insiders own just over 2.2 percent of shares, which are up 130 percent over the past year.

    The company operates a number of diverse businesses, from tax prep to vitamin sales, and franchises out its opportunities. Results have been mixed overall for the firm in the past year, with earnings down nearly 77 percent despite a 23 percent rise in revenues.

    Nevertheless, buying from company insiders and sales from larger institutional owners amid a rally indicate that there could be further upside ahead for the company in the post-pandemic era.

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  • Action to take: Investors may like shares here, as the company just initiated a dividend with a 4.1 percent yield.

    For traders, options choices are a bit thin. But there’s a large amount of interest in the November $50 calls, which last went for about $1.30. That’s a low-priced option with the potential for a high double or even low triple-digit return in the coming months, and has plenty of time to play out.

     

    Disclosure: The author of this article has no positions in the stock mentioned here, but may make a trade on this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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