Investors of Citi Trends Inc (NASDAQ:CTRN) may take note of a recent insider buying spree, as entities associated with the company reported purchasing a significant amount of stock. Over the course of three days, a total of $1,967,202 worth of shares were acquired, with prices ranging between $21.4122 and $21.7876.
The buying activity involved three related parties: Pleasant Lake Onshore Feeder Fund LP, Fund 1 Investments, LLC, and Pleasant Lake Partners LLC. These transactions were spread out between April 29 and May 1, with varying amounts of shares being purchased on each day. Specifically, on April 29, 10,800 shares were bought, followed by a larger acquisition of 50,800 shares on April 30, and an additional 30,000 shares on May 1.
The shares are held for the benefit of private investment vehicles, with Pleasant Lake Partners LLC acting as the investment adviser. It is important to note that Fund 1 Investments, LLC manages Pleasant Lake Partners LLC, and both entities are overseen by Jonathan Lennon, who serves as the managing member of Fund 1 Investments, LLC. According to the filings, each reporting person disclaimed beneficial ownership of the shares, except to the extent of their pecuniary interest.
Citi Trends, a retailer specializing in apparel and accessories, is incorporated in Delaware and has its business address in Savannah, Georgia. The company's stock is publicly traded, and these insider transactions may be of interest to current and potential investors, as they often look for such buying patterns for insights into the confidence levels of company insiders regarding the firm's prospects.
InvestingPro Insights
As Citi Trends Inc (NASDAQ:CTRN) insiders show confidence through their recent stock purchases, investors might be looking at various metrics to gauge the company's current financial health and future prospects. Here are some key data points and insights from InvestingPro that could provide further context to these insider transactions.
InvestingPro Data reveals a market capitalization of $176.53 million for Citi Trends, reflecting the size of the company in the financial markets. Despite a challenging retail environment, indicated by a revenue decline of 5.92% over the last twelve months as of Q4 2024, the company managed to achieve a gross profit margin of 38.12%, suggesting that it still retains a degree of pricing power or cost control.
However, the P/E ratio stands at -14.81, and the adjusted figure for the same period is even lower at -15.82, which could be a point of concern for investors looking for immediate profitability. This is further emphasized by an InvestingPro Tip highlighting that analysts do not anticipate the company will be profitable this year. The company's stock price has also been quite volatile, with a 22.26% decrease over the last month, which could be a sign of market uncertainty regarding the retailer's performance.
Another InvestingPro Tip worth noting is the stock's RSI suggesting it is in oversold territory. This technical indicator might be of interest to traders who consider such metrics for timing their market entries and exits.
For those interested in a deeper analysis, InvestingPro offers additional tips on Citi Trends Inc. By using the coupon code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of information that can further inform investment decisions. There are 12 additional InvestingPro Tips available for Citi Trends, offering a more comprehensive understanding of the company's financial health and market performance.
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