In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Freds Inc. (NASDAQ:FRED) reported that Alden Global Capital has picked up 9,275,000 of common stock as of 2017-04-25.
The acquisition brings the aggregate amount owned by Alden Global Capital to a total of 9,275,000 representing less than 24.4% stake in the company.
For those not familiar with the company, Fred’s, Inc. (Fred’s) is engaged in the sale of general merchandise through its retail discount stores and full service pharmacies. The Company sells general merchandise to its over 20 franchisees. The Company has approximately 660 retail stores, over 370 pharmacies, and approximately three specialty pharmacy facilities located in over 15 states mainly in the Southeastern United States. The Company is licensed to dispense pharmaceuticals in approximately 50 states. The Company operates approximately 640 company-owned stores, including over 60 express stores (or Xpress stores). Fred’s is a combination of pharmacy, dollar store and mass merchant strategically located in smaller markets. It offers various product categories, including consumables, such as tobacco, food and beverage, prescription pharmaceuticals, paper and cleaning supplies, pet supplies, health and beauty aids, and discretionary products, such as home decor, seasonal merchandise, auto and hardware, and lawn and garden.
A glance at Freds Inc. (NASDAQ:FRED)’s key stats reveals a current market capitalization of 572.43 Million based on 37.99 Million shares outstanding and a price at last close of $14.47 per share.
Looking at insider activity, there are a few transactions worth noting.
Specifically, on 2016-12-22, Alden picked up 1,800,000 at a purchase price of $19.36. This brings their total holding to 9,275,000 as of the date of the filing.
On the sell side, the most recent transaction saw Hayes unload 10,000 shares at a sale price of 20.17. This brings their total holding to 1,524,909.
It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Freds Inc. (NASDAQ:FRED) as things move forward to see if its progress aligns with these transactions.
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