Insider Buying In These Underperforming Stocks Suggests They are Out of Woods

Next in line is Box Inc (NYSE:BOX), a provider of cloud-based enterprise content collaboration platform that conducted its IPO at the beginning of the year. Director Josh Stein purchased a new stake of 20,000 shares earlier this week at prices in the range of $12.73 and $12.98 per unit, all of which are held by the Joshua and Jennifer Stein Revocable Trust. The director also owns 5,767 restricted stock units (RSUs), for each one of which he will receive one Class A share at vesting or settlement date. Box’s first post-IPO year has been quite disappointing, given that its shares have been on a steady downtrend since January. Box sold its shares at an IPO price of $14, which skyrocketed by 66% in its first trading session. However, they have lost over 45% since then, which might indicate that the director sees Box’s stock as undervalued at the moment. However, amid a decline of the stock, hedge funds are a bit cautious towards Box (see the ranking of cloud computing stocks among hedge funds). Ken Griffin’s Citadel Investment Group significantly boosted its stake in Box Inc (NYSE:BOX) during the second quarter to 474,180 shares, which serves as another bullish sign on the stock.

Finally, let’s see what Mattress Firm Holding Corp (NASDAQ:MFRM) has in store for us. Alexander S. Weiss, who has been Chief Financial Officer since July 2014, purchased 5,000 shares on Friday through two transactions at prices of $45.34 and $45.35 per share. After the last week’s transactions, the CFO currently holds a 40,629 share-stake. It is hard to overlook the recent plunge of Mattress’ shares on the chart, which was triggered by its second-quarter financial results. The company reported revenue of $661.1 million and earnings per share of $0.67, which were below expectations of $663.6 million in revenue and EPS of $0.72. It might be the case that the market overreacted to the weaker-than-expected financial results, and the CFO might be making a bet on a turnaround. Alan Fournier’s Pennant Capital Management is among the largest shareholders of Mattress Firm Holding Corp (NASDAQ:MFRM) within our database, owning 2.56 million shares as of June 30.

Disclosure: None