Insider Buying

Insider Buying Report: Stryve Foods Inc (SNAX:US)

Stryve Foods Inc
(SNAX:US)
12 months:
-87.15%
Activity:
Bullish
Pattern:
Purchase from Founder
News:
Q1 results
Stryve Foods Inc
(SNAX:US)
12 months:
-87.15%
Activity:
Bullish
Pattern:
Purchase from Founder
News:
Q1 results

Following insider buying at smaller companies can be a very profitable trading strategy. Smaller companies are less researched than larger companies, meaning that they offer greater potential for outperformance.

Here, we are going to highlight insider buying at a small American company, Stryve Foods Inc (SNAX:US). Stryve Foods is a US-based company that is focused on the healthy snacks market. It produces a variety of biltong products that are high in protein with no carbohydrates or sugar. It’s listed on the Nasdaq Stock Exchange and currently has a market capitalization of $16.9 million.

Stryve Foods Inc: Insider Buying

Our insider transaction data shows that between May 17 and May 18, Founder and Chairman Theodore Casey purchased 329,000 shares at a price of $1.24 per share. This trade cost the insider approximately $408,000. 

Following that, on May 31, Chief Executive Officer Christopher J. Boever, made a smaller purchase, picking up 10,523 shares at a price of $1.2 per share

Previous Success in the Industry

We were drawn to this insider buying at Stryve Foods for a couple of reasons.

Firstly, Mr. Casey has successfully founded a business selling health focused products previously. He recently sold Dymatize to Post Holdings having built the business up to achieve close to $2 billion of annual sales over a thirty year-period. It is therefore interesting that he has stepped in to buy company stock after a difficult time for Stryve Foods. This suggests he is confident in the long-term prospects of the company.

Secondly, Mr. Casey has spent over $400,000 on Stryve Foods shares and has increased his holding by a little over 150% in the process. This suggests he is very confident that the company’s share price is too low.

Stabilization

Stryve Foods produced an improved set of Q1 figures after a difficult Q4 in 2021.

Net sales of $7.4 million in the first quarter were up from the $6.8 million achieved in the quarter prior. Meanwhile, wholesale sales of $4.9 million represented an increase of 33% on Q4 2021. The gross margin of 15.1% was a 410 basis points improvement on the quarter before. The operating loss in Q1 of $7.2 million was much better than the $11.5 million lost in Q4 last year.

“We ended the quarter showing balance sheet strength, with $28 million of positive net working capital, including approximately $13 million of cash, and virtually no debt. And, while the year-over-year comparisons convey a vastly improved financial position, it's really exciting to see the $4.6 million improvement in net loss we have achieved since the fourth quarter of last year. We have made great strides in our path to profitability that we will look to build upon this year. We feel good about our progress and our previously shared net sales guidance range for 2022,” commented Alex Hawkins, CFO.

After reading the Q1 update, we believe that the recent insider buying at the company is bullish. It appears to us that the Founder, who is likely to know the company’s business model better than anyone else, is extremely confident that the company will continue to make progress and that the stock is undervalued.

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