JAB Holdings, a major holder at Krispy Kreme (DNUT), recently added 234,748 more shares to their holdings. The buy increased the company’s stake by 0.35 percent, and came to a total purchase price just over $3.37 million.
This buy follows up on a number of insider buys back in July, including a 294,118 share buy from the company’s chairman of the board. Overall, company insiders own nearly 45 percent of company shares.
There have also been no insider sales since the firm went public on July 1 of this year.
The donut chain has seen shares drop about 29 percent since the company went public. While the company isn’t yet profitable, shares are up nearly 43 percent over the past year.
Action to take: Investors may like shares here, as they appear to have started an uptrend last week after dropping as low as $13 per share. On a rebound, the company could see its valuation double or better in the next few years.
For traders, options are a bit limited, but the February $15 calls are slightly in-the-money, and trade for about $2.50. They offer leveraged upside on a rally in shares, although it’s still early in the company’s trading history to determine any strong tradeable patterns.
Disclosure: The author of this article has no position in the company mentioned here, but may make a trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.