Shares of Camping World Holdings (NYSE:CWH) rose more than 11% on Tuesday after the CEO of the recreational-vehicle lifestyle company continued his string of insider stock purchases, acquiring another 17,525 shares at an average price of $29.04.
As investing legend Peter Lynch has noted, insiders can sell their stock for any reason, but they typically buy it for only one reason: They think the price is going up.
CEO Marcus Lemonis, arguably better known to most people as the personality behind the CNBC reality TV show The Profit, began purchasing shares of Camping World on Aug. 10. That was after the recreational-vehicle seller reported earnings that beat analyst sales and profit expectations but saw its stock decline sharply anyway.
Between then and the latest purchase, filed this morning, Lemonis has filed 14 separate buy transactions for the stock, often for around 3,000 shares at a time.
After his latest purchase, which was notably his most aggressive yet and occurred after the stock dipped below $30 a share, it brings his stake in Camping World to over 534,600 shares. An additional 83,100 shares are held by a firm associated with Lemonis, ML Acquisition.
With over 33 million shares outstanding, his holdings amount to about 1.6% of the total, but his actions flashed a bullish signal for investors.