What: Shares of Tile Shop Holdings (NASDAQ:TTS) rose 14.4% Wednesday after an insider purchased a considerable number of shares in the specialty flooring retailer.
So what: Specifically, an SEC filing dated March 8, 2016 revealed Tile Shop board member and independent director Peter Jacullo acquired 30,000 shares of Tile Shop Holdings for roughly $395,000 over the past few days. That brings Jacullo's total stake to 266,094 shares, worth just over $3.8 million as of this writing.
Now what: To be fair, Jacullo's purchase may not be solely responsible for Tile Shop's rise today. It also helps that the company just capped a solid first year under its new CEO, Chris Homeister; during its latest quarter, revenue rose 14% year over year to $71.9 million, helped by a 9.8% increase in comparable-store sales, while net income skyrocketed more than 150%, to $3.8 million. Earnings per share also rose 133%, to $0.07.
What's more, Homeister noted the progress across Tile Shop's key initiatives in 2015 was "substantial," and stated the company anticipates continuing to achieve significant growth in revenue, operating margin, and earnings per share in fiscal 2016. All told, given Jacullo's vote of confidence, and with Tile Shop stock still down nearly 12% year to date as of this writing, it's no surprise to see the market bidding up shares today.