GrowGeneration Corp. (NASDAQ:GRWG) CEO Darren Lampert recently purchased a total of 57,467 shares of the company's common stock. The shares were acquired at a weighted average price of $1.75 per share, amounting to an investment of approximately $100,567. The transaction took place on November 19, 2024, as disclosed in a recent SEC filing.
Following this transaction, Lampert holds a direct ownership of 1,595,883 shares. Additionally, he indirectly owns 138,474 shares, which include holdings in a spousal trust and a charitable fund where he serves as trustee. The shares were bought at prices ranging from $1.73 to $1.77, according to the filing.
This recent acquisition reflects Lampert's ongoing commitment to GrowGeneration, a leading specialty retail chain focused on hydroponics and organic gardening products.
In other recent news, GrowGeneration Corp. reported mixed Q3 results, with a decrease in net revenue to $50 million, down from the previous quarter's $53.5 million. This decline is due to ongoing store closures as part of the company's restructuring plan, despite a 12.5% increase in same-store sales and a rise in proprietary brand sales to 23.8% of total gardening sales. The company also announced the closure of 19 underperforming stores, of which 12 have already been shut down. Despite a net loss of $11.4 million for the quarter, GrowGeneration maintains a strong cash position with no debt. The full-year 2024 revenue guidance is set between $190 million and $195 million. The company also launched a B2B e-commerce portal to improve efficiency and customer service. These are recent developments in the company's efforts to improve operational efficiency and position itself for future growth.
InvestingPro Insights
CEO Darren Lampert's recent purchase of GrowGeneration Corp. (NASDAQ:GRWG) shares aligns with one of the key InvestingPro Tips: "Management has been aggressively buying back shares." This insider buying activity often signals management's confidence in the company's future prospects.
Despite the challenging market conditions reflected in the stock's recent performance, with InvestingPro Data showing a 6-month price total return of -32.17%, the company maintains a strong financial position. Another InvestingPro Tip highlights that GRWG "Holds more cash than debt on its balance sheet," which provides financial flexibility in the current volatile market environment.
The company's market capitalization stands at $103.68 million, according to InvestingPro Data, reflecting its current valuation. While analysts anticipate a sales decline in the current year, the company's price-to-book ratio of 0.71 suggests the stock may be undervalued relative to its assets.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for GrowGeneration Corp., providing deeper insights into the company's financial health and market position.
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