Insider Buying Points To Huge Upside For These 3 Beaten-Down Stocks

Ruby Tuesday Inc. (NYSE:RT) also had three insiders make big purchases this week. Director Stephen I. Sadove bought 15,000 shares yesterday at prices that ranged from $4.94-to-$5.23 per share, increasing his holding to 177,604 shares. Chief Legal Officer and Secretary Rhonda J. Parish purchased 10,000 shares on the same day at a cost of $5.25 per share and currently holds a 20,241-share position. Also on the same day, Director Donald E. Hess added 10,000 shares to his stake, which currently comprises 89,758 shares. The 10,000-share block was purchased at a cost of between $5.26 and $5.28 per share.

The shares of the owner and operator of the Ruby Tuesday casual dining chain and the Lime Fresh Mexican Grill fast casual restaurants are down by 15% over the past year. However, the stock might embark on a rebound in the future, considering that the company is in the process of undertaking a strategic brand transformation of the Ruby Tuesday concept. The company reported total revenue of $537.24 million for the 26 weeks that ended December 1, down from $540.66 million reported for the same period of the prior year. This decrease was mainly attributable to restaurant closings, partially offset by an increase in same-restaurant sales at its Ruby Tuesday restaurants. Even so, Ruby Tuesday experienced a decrease in customer traffic last year, so the company has yet to fully feel the effects of the brand transformation process. The number of hedge funds from our database with positions in the company climbed to 20 from 19 during the third quarter, with Royce & Associates, founded by Chuck Royce, upping its position in Ruby Tuesday Inc. (NYSE:RT) by 4% during the July-to-September quarter, to 2.02 million shares.

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