Jan Barta, a major holder at Groupon Inc (GRPN), recently added 123,346 shares. The buy increased her stake by just under 7 percent, and came to a total purchase price of $2.374 million.
This marks the first insider activity of the year, and the first buy from insiders since 2020. Last year saw two directors make small sales of shares. Going back to 2020, both buyers and sellers were far more active.
Overall, insiders own 25.7 percent of shares.
The company, which connects consumers to merchants with special deals, has shed 60 percent in the past year. Revenue is down by nearly 35 percent, but earnings have soared 110 percent. With in-person events ramping up again, the company may be able to substantially increase its revenues this year.
Action to take: Shares look somewhat attractive as a rebound play here. Trading at 13 times forward earnings and just over 5 times forward earnings, the company isn’t pricing in any kind of potential growth. With insiders buying now, and the company trading at a strong valuation, there could be more upside ahead.
For traders, the October $27 calls have ample time to play out for a rebound. And going for about $2.05, they’re an inexpensive way to play any rally in shares in the next six months.
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.