Insider Buying

Insider Buying Report: Boot Barn Holdings Inc (BOOT:US)

This is the entrance of a well organized retail store by Boot Barn Holding Inc. showing a variety of merchandise.
Boot Barn Holdings Inc
(BOOT:US)
12 months:
+24%
Activity:
Bullish
Pattern:
Large purchase from CFO
News:
Good Q3 results
Boot Barn Holdings Inc
(BOOT:US)
12 months:
+24%
Activity:
Bullish
Pattern:
Large purchase from CFO
News:
Good Q3 results

CFO purchases can provide investors with valuable trading insights. CFOs tend to have a detailed understanding of their firms’ financials, and some studies have found that these insiders earn higher profits from their purchases of company shares than CEOs do.

In this report, we are going to highlight a CFO buy at Boot Barn Holdings Inc (BOOT:US). Boot Barn is an American retailer of western and work-related footwear, apparel, and accessories. The group has around 250 stores across the US, and also sells goods online. It is listed on the New York Stock Exchange and currently has a market capitalization of $2.49 billion.

Boot Barn Holdings Inc: Insider Buying

Our data shows that on February 24, CFO Jim Watkins purchased 2,500 BOOT shares at a price of $77.00 per share. This trade cost the insider $192,500 and increased his holding to 10,781 shares.

A.O. Smith Corporation's price fluctuation and transactions from April 2021 to February 2022 is depicted in the chart from 2iQ Alpha Terminal.

Company Experience

While Mr. Watkins has only been CFO since November 2021, he has considerable experience at the company. He joined Boot Barn in 2014 and since then, has worked in a variety of roles, including as Senior Vice President, Finance and Investor Relations. This background means he is likely to know the company very well.

What stands out about this trade from the CFO is that it has boosted his holding by around 30%. The fact that the insider has upped his stake by such a significant percentage suggests he’s confident the stock is set to move higher.

Strong Growth

Boot Barn’s recent Q3 fiscal 2022 results showed that the group is generating strong growth right now.

For the period, net sales amounted to $485.9 million, representing an increase of 71% on sales generated in the same quarter two years earlier. Compared to the quarter ended December 28, 2019, same store sales increased 61.0%, with an increase in retail store same store sales of 59.1%, and an increase in e-commerce same store sales of 69.3%. Net income per diluted share for Q3 was $2.23, compared to $0.81 in the period two years earlier.

“Our strong third quarter results once again demonstrate Boot Barn is a high growth retailer with significant opportunity ahead of us,” commented Jim Conroy, President and Chief Executive Officer. “We continue to demonstrate that we have increased the size of our target market as we have extended beyond our legacy western customer,” he added.

In light of these strong results, and the comments from the CEO, we see the insider buying here as a bullish indicator.

Recent Articles