Tupperware Brands stock has lost nearly two years of gains, and insiders recently scooped up millions of dollars of shares of the maker of food-storage containers.
Tupperware (ticker: TUP) stock has tumbled 57% year to date, compared with a 23% drop in the S&P 500 index . One big reason why shares are underperforming the broader market is that Tupperware withdrew its financial forecasts in early May, sending shares tumbling. Last week, Tupperware stock slid to an intraday low of $5.54, a level shares hadn’t traded at since early July 2020.
A group of Tupperware insiders and their families paid $2.2 million over June 10 and 14 for a total of 361,500 shares, an average price of $5.96 each. The buying was led by Executive Vice Chairman Richard Goudis, who paid $1 million on June 10 for 170,000 shares, an average price of $6.07 each, according to a form he filed with the Securities and Exchange Commission. A former Herbalife Nutrition (HLF) CEO, Goudis made the purchase through a trust. In addition to that stock, he owns 54,088 Tupperware shares in a personal account.
Tupperware declined to make any of the insiders purchasing stock available for comment.
Another big buyer was the husband of director Pamela Jones Harbour, a former commissioner of the Federal Trade Commission and a retired Herbalife executive. John Harbour paid $256,500 on June 14 for 45,000 Tupperware shares, an average price of $5.70 each. Pamela Harbour owns 17,877 shares in a personal account.
Tupperware President and CEO Miguel Fernandez paid $210,000 on June 10 for 35,000 shares, an average price of $6 each. He now owns 461,965 Tupperware shares. Fernandez was buying stock earlier this year at more than three times the price. He paid $197,300 on March 2 for 10,000 shares, an average price of $19.73 each.
Douglas Lane, the principal and director of research at Lane Research, cut estimates on Tupperware in mid-May. He halved his target for the stock price to $12.50 from $25, but kept a Buy rating.
“[W]e believe that the company is still in the very early innings of its efforts to properly monetize the Tupperware brand, and at current valuations, even on our well below consensus estimates, patient investors may look back to this period as being a very attractive entry point into the stock,” he wrote.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
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