These 3 Battered Stocks are Being Bought Up by Insiders; Are They Set to Rebound?

Mattress Firm Holding Corp (NASDAQ:MFRM) is another company that saw one of its insiders purchase a relatively sizable block of shares last week. Director Joe Fortunato snapped up a 5,000-share block last Friday at a price tag of $41.21 apiece, lifting his overall holding to 12,215 shares. As the name suggests, Mattress Firm engages in the retail sale of mattresses and bedding-related products and it appears that there were no significant economic factors that greatly impacted the company’s stock performance in 2015. Nonetheless, the shares of the company are down by 29% over the past year, presumably because investors anticipated stronger financial performance last year.

Mattress Firm reported net sales of $1.92 billion for the 39 weeks that ended November 3, up by 59.2% year-over-year. This substantial top-line growth was mainly achieved due to an increase in the number of operated stores as well as an increase in comparable-store sales. Meanwhile, the company’s bottom-line figure for the 39-week period reached $51.2 million, up from $37.6 million reported a year ago. It should also be mentioned that the stock trades at a rather attractive forward price-to-earnings ratio of 14.21, which compares favorably with the ratio of 15.75 for the S&P 500 benchmark. According to a 13G filing submitted in December, Alan Fournier’s Pennant Capital Management owns 2.72 million shares of Mattress Firm Holding Corp (NASDAQ:MFRM), representing 7.7% of its outstanding shares.

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