Ruby Tuesday insider trading: Ruby Tuesday, Inc. (NYSE:RT) made negative headlines recently when it announced its first quarter 2014 earnings. Nevertheless, some analysts claim, “management is repositioning the company and rolling out a value-oriented menu in hopes that they can get their core customer to return.” Jill Golder seems confident, as she purchased 5,000 shares of common stock on Friday, at $6.05 per share, bringing her total holdings in the firm to 30,324 shares.
After Friday’s acquisition, the Senior Vice President for Finance had holdings amounting to approximately $183,460 when the market closed. This insider purchase comes as a surprise and could serve as a boost in confidence for the company’s stock, which is currently trading very near its 52-week low of $6 per share. While trading at 0.3 times its trailing sales, the company is available at a huge price discount of 87.5% relative to its industry average.
The price discount is indicative of Ruby Tuesday’s problems and the 60% loss in share value the stock has experienced over the past three months. Some believe the firm can manage to turn things around and reclaim their customers, however, recent figures show a 10.4% decline in traffic. The firm announced declines in same-restaurant sales and seems to be sustaining its current share value only due to its real-estate assets.
Disclosure: Pablo Erbar holds no position in any stocks mentioned