Insider Buying In Office Depot Sends Stock Ripping Higher

Insider Buying In Office Depot Sends Stock Ripping Higher
Insider Buying In Office Depot Sends Stock Ripping Higher

For the first time in over a year, a handful of Office Depot Inc (NASDAQ: ODP) insiders are buying shares, and it’s lighting a fire under the stock. 

What Happened

According to insidercow.com, the buying started May 30 when CFO Joseph Lower purchased 20,000 shares at a price of $2.39. The filing marks the first time any company insider had purchased shares since March 2017. 

A day later, a subsequent filing revealed director Travis Nigel purchased 10,000 shares at a price of $2.39. Finally, on Monday, a new filing revealed that director Joseph Vassalluzzo had purchased 58,800 shares of stock at $2.55 per share.

All together, the three buys represent 88,800 shares of stock and a total investment of roughly $220,000.

Why It's Important 

Office Depot stock has taken off since the first filing, jumping 13.9 percent in a week. While the executives’ buys may represent a relatively modest purchase, the flurry of activity seems to have inspired some confidence in the market.

The daily chart for June 1 includes a massive volume bar on Friday afternoon representing more than 49.7 million shares. That volume represents about six times Office Depot’s average daily trading volume and about 9 percent of the stock’s entire float.

Friday’s trading volume represents the highest daily volume for Office Depot since mid-2016.

What's Next

With no major news from the retailer out in the past week, it seems as if traders are reading into the insider purchases — or perhaps the insider buys have simply triggered a relief rally in the battered stock. Even after the past week’s big gains, Office Depot stock is down 49.7 percent in the past year.

Related Links:

4 Keys To The Office Depot Bear Thesis

Benzinga Pro's 5 Stocks To Watch Today

Photo by Mpcastillo22/Wikimedia. 

© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This article was written by cool news network.

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