Glenn W. Welling, director and 10% owner of Jamba Inc. (JMBA, Financial), purchased 36,365 shares of the company between Feb. 2 and Feb. 8, according to the Securities and Exchange Commision. The purchases came in six separate transactions for an average estimated price of $9.49 per share.
Welling now owns a total of 2,265,035 shares.
The company is a retailer of blended-to-order fruit smoothies, squeezed-to-order juices, blended beverages and snacks. The company was incorporated on Jan. 6, 2005. As of Dec. 29, 2015, it had 893 Jamba Juice stores globally.
Jamba has a market cap of $148.24 million, an enterprise value of $126.02 million, a price-book (P/B) ratio of 205.74 and a price-sales (P/S) ratio of 1.82.
According to GuruFocus, Jamba has a 4 out of 10 financial strength rating with no debt. The equity-asset ratio is 0.01. The Beneish M-score of -3.73 indicates the company is not a manipulator of its financial statements.
Jamba Inc has a 2 out of 10 profitability and growth rating with an operating margin of -18.39%, a net margin of -18.96%, a return on equity (ROE) of -330.73%, three-year revenue growth of -14.90% and three-year EBITDA growth of 8.00%.
Jamba's market price has recently seen an upswing after introducing its latest smoothies. According to a Wall Street Journal article:
"Jamba Inc., a leading lifestyle brand with a passion for making healthful living fun, will introduce its Super Blend Smoothies(TM) as a first step in the company's renewed focus on highlighting the benefits of blending. The smoothie line, available on Jan. 18, was developed in collaboration with Harley Pasternak, celebrity fitness trainer, blending expert and New York Times best-selling author of 'The Body Reset Diet.'"
Today, consumers are becoming more conscious about their health. Welling likely believes smoothie sales will increase in the immediate future, driving up the company's market price. The price is currently near a five-year low.
Below is a Peter Lynch chart that shows Jamba is trading slightly above its intrinsic value.
Disclosure: Author does not own any shares of this company.
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