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The CEO of This Spirits Company Keeps Buying More and More Shares

Let’s wrap up this insider trading article by having a look at the insider buying activity witnessed at Castle Brands Inc. (NYSEMKT:ROX). President and Chief Executive Officer Richard Lampen snapped up 8,500 shares on Wednesday at $0.89 apiece. Mr. Lampen, who bought an additional amount of 67,100 shares this year, currently owns 1.26 million shares.

The shares of the spirits company, which produces and sells premium and super premium brands of rum, whiskey, liqueurs, vodka and tequila, have declined by 38% in the past 52 weeks. The company’s main objective is to become a profitable international spirits company; a target that does not seem to be achievable in the near future. Castle Brands has incurred significant operating and net losses since inception, and has not generated cumulative positive cash flows from operations either. Meanwhile, the spirits company’s net sales for the nine months that ended December 31 were $52.26 million, up by 26.5% year-on-year due to the overall growth of its Jefferson’s portfolio, and its Gosling’s rum and Gosling’s Stormy Ginger Beer. The company’s net loss for the nine months ended December 31 was $2.94 million, which improved from a $3.17 million net loss reported for the same period of the prior year.

Castle Brands had borrowed $9.6 million of the $19.0 million figure available under its credit facility at the end of December, while the company’s cash and cash equivalents were $1.9 million at year-end. There were four funds tracked by Insider Monkey invested in the spirits company at the end of 2015. Murray Stahl’s Horizon Asset Management reported owning 106,000 shares of Castle Brands Inc. (NYSEMKT:ROX) in its 13F filing for the first quarter of 2016.

Disclosure: None