Summary
- Post-earnings, the stock dropped -30% resulting in this undervalued opportunity.
- The stock trades at a 8.1% yield, and at a huge discount to both historicals and the industry.
- Insiders have been buying between $6-7. The insider buys in the past were good entry points.
- The buyback announced a day before insider purchases could result in a repurchase of 40% of market cap!
Company Description
Stage Stores (NYSE:SSI) is a specialty department store retailer with around 850 stores in 40 states across the U.S. Headquartered in Houston, Texas, this almost 100-year old company has 14,500 employees in stores that average 18,200 selling square feet. The company operates under the Bealls, Goody’s, Palais Royal, Peeble and Stage names. The majority of stores are in small towns and carry a wide range of products.
A breakdown/summary of the company is shown in the excellent slides below. The full investor presentation can be found here.
