SeaChange (SEAC) Among 3 Companies Whose CEOs Bought Shares This Week

This Spirits Company’s CEO Buys More Shares on the Open Market

Castle Brands Inc. (NYSEMKT:ROX) is yet another company that saw its top executive purchase shares this week. President and Chief Executive Officer Richard Lampen acquired 10,000 shares on Tuesday at prices of between $0.86 and $0.88 per share. Mr. Lampen, who also purchased 7,100 shares on March 29 for $0.85 each, currently owns 1.24 million shares. The CEO also bought two separate 25,000-share blocks in March, so he definitely sees strong potential in the company. Castle Brands is an international spirits company that develops and markets premium and super premium brands in several beverage alcohol categories such as rum, whiskey, liqueurs, vodka and tequila. The company distributes its products across the United States and 13 primary international markets.

Castle Brands’ net sales for the nine months that ended December 31 grew by 26.5% year-over-year to $52.3 million, primarily as a result of overall growth in the Jefferson’s portfolio, Gosling’s rum, and Gosling’s Stormy Ginger Beer. Higher sales of Jefferson’s, Jefferson’s Reserve, and Jefferson’s Ocean Aged at Sea bourbons positively impacted Castle Brands’ overall spirits sales volume for the nine-month period, whereas decreases in sales of the liqueurs portfolio offset some of that positive impact. The spirits company’s gross profit grew by 32.2% to $20.4 million for the nine month period, with the gross margin increasing to 39.0% from 37.3%. The increase in both indicators was mainly driven by higher sales of more profitable brands such as the Jefferson’s bourbons. Even so, Castle Brands has been struggling to reach profitability in recent years, and has not generated positive cash flow from operations since inception.

Castle Brands has seen its market value decline by 37% in the past 12 months, after plunging by 26% thus far in 2016. A mere four money managers tracked by Insider Monkey were invested in the spirits company at the end of 2015. Paul Tudor Jones’ Tudor Investment owned 70,500 shares of Castle Brands Inc. (NYSEMKT:ROX) on December 31.