Joseph DeAngelo (Insider Trades), CEO, president and chairman of HD Supply Holdings Inc. (HDS), acquired 32,100 shares in the company on Sept. 22. The price was $31.07 per share for a total transaction of $997,347.
HD Supply is a North American industrial distributor with a market cap of $6.26 billion.
DeAngelo’s aforementioned transaction is the first insider buy in HD Supply year to date as well as DeAngelo’s sole insider purchase with the company. In comparison, DeAngelo has sold 1,040,156 shares of HD Supply in seven transactions. Year to date, there have been 14 insider sells totaling 178,408 shares. In 2014 and 2015, there were 43 insider sells totaling 140,420,638 shares and 26 transactions totaling 53,235,077 shares sold.
Bain Capital Investors LLC (Insider Trades) and Paul Edgerley (Insider Trades), 10% owners, accounted for 96.9% of insider trade volume in 2015, and 10% owner Stephen Zide (Insider Trades) contributed to 21.4% of the volume in 2014. For more information about insider trades with HDS, click here.
The company reported an increase in gross profit from $559 million to $609 million when comparing the fiscal first quarters of 2015 and 2016. For the three months ended May 1, the company recorded net loss of $14 million, down from net income of $234 million recorded in the corresponding quarter of the previous year. Diluted EPS also decreased from $1.24 to -7 cents when comparing the same time periods.
DeAngelo commented that he is pleased with the company’s performance in the first fiscal quarter and that the company focused on what it “could control and delivered solid profitable growth, operating leverage and free cash flow.” On Sept. 19, the company announced that its indirect wholly owned subsidiary, HD Supply Inc., secured committed investors to fund a new tranche of term loans an aggregate principal amount of $555 million priced at 99.50% of the principal amount and bearing interest at a rate of LIBOR plus 2.75% per annum. Interest will be reduced to LIBOR plus 2.5% per annum when the company reaches a total consolidated leverage ratio of 3.0x or less.
During the second quarter Jim Simons (Trades, Portfolio) increased his holding in HD Supply while Joel Greenblatt (Trades, Portfolio) decreased his position in the company. Simons purchased 749,800 shares, increasing his position in HD Supply by 3,845.13%. Greenblatt reduced his holding by 44.92%, selling 251,260 shares. Both transactions were made for an average price of $34.05 per share. For more information about guru transactions with HDS, click here.
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