In a recent series of transactions, insiders at Tile Shop (NASDAQ:TTSH) Holdings, Inc. (NASDAQ:TTSH) have made significant purchases of the company’s stock, totaling over $1.88 million. The transactions, which occurred on March 14 and March 18, 2024, involved the acquisition of shares at prices ranging from $6.5009 to $6.5959.
According to the SEC filings, the buyers include entities such as Pleasant Lake Onshore Feeder Fund LP, Fund 1 Investments, LLC, and Pleasant Lake Partners LLC, all of which are associated with each other through various investment and advisory roles. The filings indicate that these entities are major stakeholders, each owning more than ten percent of Tile Shop Holdings.
The largest of the purchases took place on March 18, when 242,000 shares were acquired at a price of $6.5009 per share. On the same day, another 37,000 shares were bought at a slightly higher price of $6.5959 per share. Earlier on March 14, an additional 10,000 shares were purchased at $6.5513 each. These transactions collectively contribute to the total investment of approximately $1.88 million in the company’s common stock.
The footnotes in the SEC filing clarify that the shares are held for the benefit of the entities mentioned, with Pleasant Lake Partners LLC serving as the investment adviser. The report also notes that Fund 1 Investments, LLC manages Pleasant Lake Partners LLC, with Jonathan Lennon as the managing member of Fund 1 Investments. Benjamin C. Cable, Chief Operating Officer of Fund 1 Investments, LLC, signed off on the transactions on behalf of all reporting entities.
These insider transactions can be a signal to investors about the confidence that major stakeholders have in the company’s future prospects. Tile Shop Holdings, Inc. is a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories.
InvestingPro Insights
In light of the recent insider transactions at Tile Shop Holdings, Inc. (NASDAQ:TTSH), several metrics and tips from InvestingPro provide further context to these purchases. With a market capitalization of approximately $294.22 million and a P/E ratio of 28.19, adjusting to 27.09 for the last twelve months as of Q4 2023, the company appears to be valued by the market at a premium relative to earnings.
InvestingPro Tips suggest that Tile Shop Holdings has high shareholder yield and impressive gross profit margins, which have been reported at 64.45% for the last twelve months as of Q4 2023. This indicates that the company is effective in converting revenue into profit, a potentially reassuring sign for investors.
The company's liquid assets also exceed short-term obligations, and analysts predict Tile Shop Holdings will be profitable this year, aligning with the fact that the company has been profitable over the last twelve months. These factors may have contributed to the confidence demonstrated by the insiders' substantial stock purchases.
Additionally, the company's revenue for the last twelve months as of Q4 2023 stands at $377.15 million, despite a slight revenue decline of 4.45% during the same period. The operating income margin is reported at 4.56%, and the company's return on assets is 3.04%. These figures can help investors gauge the company's operational efficiency and asset profitability.
It's worth noting that Tile Shop Holdings does not pay a dividend to shareholders, which may be a consideration for income-focused investors.
For those interested in a deeper analysis, there are more InvestingPro Tips available. By visiting https://www.investing.com/pro/TTSH and using the coupon code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 5 additional tips listed in InvestingPro that can provide further insights into Tile Shop Holdings' financial health and future prospects.
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