Insider Buying

Insider Buying Report: Drive Shack Inc (DS:US)

Drive Shack Inc
(DS:US)
12 months:
-46.43%
Activity:
Bullish
Pattern:
Large purchase from Chairman
News:
Q1 results
Drive Shack Inc
(DS:US)
12 months:
-46.43%
Activity:
Bullish
Pattern:
Large purchase from Chairman
News:
Q1 results

Top-level corporate insiders such as CEOs and Chairmen tend to have the most up-to-date information on their businesses. If they’re buying company stock, it’s generally a sign that the outlook for the stock is attractive.

In this report, we are going to highlight some buying from a top-level insider at Drive Shack Inc (DS:US). Drive Shack is a leading owner and operator of golf-related leisure and entertainment businesses in the US. Its portfolio consists of Drive Shack gaming and entertainment venues, American Golf, which is an owner, lessee, and manager of golf courses, and Puttery, its new, indoor entertainment golf experience. The company is listed on the New York Stock Exchange and currently has a market capitalization of $138 million.

Drive Shack Inc: Insider Buying

Our insider transaction data shows that between May 11 and May 16, Chairman Wesley Edens purchased 4.0 million Drive Shack shares at an average price of $1.31 per share. This trading activity cost the insider around $5.25 million and increased his holding to 5.848 million shares.

The graph represents Drive Shack Inc' price history, with significant buy and sell events highlighted.

Experienced Investor

This trading activity is worth highlighting due to the fact that Mr. Edens – who has served as Chairman since the company’s inception and was previously CEO of the company – is an experienced investor.

Since 1998, he has served as Principal and a Co-Chairman of the Board of Directors of Fortress Investment Group LLC and member of the Management Committee of Fortress. At Fortress, he is responsible for the private equity and publicly traded alternative investment businesses of Fortress Investment Group LLC.

Prior to co-founding Fortress in 1998, he was a Partner and Managing Director of BlackRock Financial Management Inc., where he headed BlackRock Asset Investors, a private equity fund.

Given his background, Mr. Edens is likely to have an excellent understanding of the company’s intrinsic value.

Strong Start to 2022

Drive Shack’s recent Q1 results showed that the group has made a good start to 2022, revenue wise.

For the quarter, total revenue amounted to $69.0 million, an increase of $7.9 million or 12.9%, compared to the same period last year. Meanwhile, the company’s entertainment golf business, comprising both Drive Shack and Puttery venues, generated total revenue of $14.2 million for the quarter, an increase of 72.4% year on year.

“2022 is off to an incredible start. Our Drive Shack and American Golf businesses continue to generate solid earnings and we are gaining a clear proof of concept with our two Puttery venues, both delivering sales results and profitability margins ahead of our expectations this quarter,” said Drive Shack Inc.’s President and Chief Executive Officer Hana Khouri. “The demand for future events remains exceptionally strong across our entire brand portfolio,” he added.

Looking ahead, the group plans to invest in its Puttery segment as it believes this presents the best path forward for near-term growth. It noted that it is on track to open seven locations by the end of 2022, including venues in Washington DC, Houston, and Chicago. Management added that the group is focused on optimizing its capital structure to support its development plans and remains centered on driving growth and profitability in its business for years to come.

In light of the company’s solid top-line growth and expansion plans, we see the insider buying as a bullish indicator.

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