Insider Trading Report: Purple Innovation Inc (PRPL)

Gary Kiedaisch, a director at Purple Innovation (PRPL) recently picked up 5,000 shares. The buy increased his holdings by 12 percent and came to a total purchase price of $150,000.

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  • That’s the first insider buy at the company since March 2020. Insiders have typically been sellers over the past year, including a multimillion share sale from a prior major owner. Insiders at the company now own just under 0.5 percent of shares.

    That’s too bad, as those insiders missed out on a 500 percent gain in the past year, about 10 times as large as the S&P 500’s move off the pandemic low.

    The company, best known for the Purple mattress, bills itself as the newest innovation in mattress technology. While the company is just starting to report earnings, revenues are up 40 percent in the past year.

    Action to take: Based on the company’s revenues and gross profit of $300 million per year, the current market cap of the company at $2 billion still makes it look like there’s room to run.

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  • Shares recently dropped on earnings in the start of March, but are moving back higher. Trading in the low $30s, shares are still down about 25 percent from their all-time highs in the low $40s. Shares look attractive in the low $30 range.

    For traders, a new uptrend may be underway. The October $40 calls, with a bid/ask spread of about $3.75, offer a way to play that upside with less capital up front.