PLANO, TX – In a recent transaction on June 14, Allen C. David Jr, a director of BGSF, Inc. (NYSE:BGSF), purchased shares of the company's common stock, totaling $31,048. The purchases were made at prices ranging from $7.10 to $7.20 per share.
The SEC filing revealed that Allen acquired 1,200 shares at $7.10 each and an additional 3,129 shares at $7.20 each. Following these transactions, the director now owns a total of 73,869 shares in the staffing services company. Notably, the report disclosed that Mr. David is the custodian of 7,500 shares for his mother, Romona F. Allen, indicating a family investment in the firm.
BGSF, Inc., headquartered in Plano, Texas, operates in the staffing industry, providing workforce solutions to a variety of sectors. The company's stock is traded under the ticker symbol NYSE:BGSF, and it has undergone name changes in the past, previously known as BG Staffing (NYSE:BGSF), Inc. and LTN Staffing, LLC.
The recent acquisition by a company insider often garners attention from investors, as it may reflect the management's confidence in the company's future prospects. The transaction was officially signed off by John R. Barnett, Attorney-in-Fact for C. David Allen, on June 17, as documented in the SEC filing.
In other recent news, BGSF Inc. has announced a strategic review in response to perceived undervaluation, with an emphasis on accelerating growth and enhancing its return profile. In a significant move, the company has suspended its cash dividend as part of this review. Despite facing challenges in the property management segment, BGSF reported a 7% increase in project and consulting work related to IT and finance and accounting for the first quarter of 2024, meeting its financial expectations.
The company is focusing on revenue growth and scaling up operations, including a partnership with Workday (NASDAQ:WDAY) and a new compensation structure aimed at boosting productivity. These recent developments, part of BGSF's strategic alternatives, are expected to address its market position and financial performance amidst a challenging environment.
While the property management segment is under increased competition and cost pressures, the professional segment is growing through new client relationships and the partnership with Workday. The company also acquired Arroyo, presenting cross-selling opportunities and leadership enhancements. Investors will be keenly watching the results of BGSF's strategic review and its impact on the company's future trajectory.
InvestingPro Insights
In light of the recent insider purchase by director Allen C. David Jr, investors in BGSF, Inc. may find additional context in the company's financial metrics and market performance. According to InvestingPro data, as of the last twelve months leading up to Q1 2024, BGSF has a market capitalization of $79.89 million and a P/E ratio that stands at 13.34, suggesting a potentially attractive valuation in comparison to earnings.
Moreover, BGSF's dividend yield is notably high at 8.23%, which, coupled with a history of maintaining dividend payments for 11 consecutive years, underscores the company's commitment to returning value to its shareholders. This is further supported by the InvestingPro Tip that highlights BGSF's high shareholder yield.
Despite recent price volatility, with a 3-month total return of -27.17%, BGSF's strong free cash flow yield is emphasized as an InvestingPro Tip, implying that the company is generating a healthy amount of cash relative to its share price. Additionally, BGSF's liquid assets exceed its short-term obligations, suggesting financial stability.
For readers interested in a deeper analysis, InvestingPro offers additional tips that can provide more nuanced insights into BGSF's financial health and future prospects. By using the coupon code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, allowing access to a wealth of investment knowledge and data-driven tips. There are currently 7 more InvestingPro Tips available for BGSF, which can be found at: https://www.investing.com/pro/BGSF.
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