Party City (NYSE:PRTY) news for Monday includes insider buying sending PRTY stock higher.
The insider buying comes from Party City Chairman of the Board Norman Matthews. He bought up a total of 250,000 shares of PRTY stock for an average of $2 each. The buying was revealed in a filing with the U.S. Securities and Exchange Commission (SEC) after markets closed on Friday.
Matthews’s transaction means he spent roughly $500,000 to acquire the shares on the open markets. The earliest date when the transactions started taking place was on Aug 20. Following this, he now holds 748,094 shares of PRTY stock.
So why exactly did the Party City Chairman purchase such a large amount of PRTY stock? There are a couple of reasons that could be behind why the insider has bought up 250,000 shares of the stock.
The first possibility is that Matthews is expecting some kind of positive news for the company. It could be that Party City is expecting business to improve as the holiday seasons near and lockdowns due to the novel coronavirus lift.
Another possibility is that the Chairman is looking to increase his stake in the company while the stock is down. PRTY was hit hard by the coronavirus but has been slowly recovering. It could be that Matthews saw this has his chance to pick up the shares at a decent price before the recovering goes into full swing.
No matter the reason, the move has caught the interest of PRTY investors. PRTY stock was up 19.8% as of Monday afternoon and but is down 13.8% year-to-date when markets closed on Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.