Culp Inc sees insider buying activity with $428,164 in stock purchases

Published 13/03/2025, 00:02
Culp Inc sees insider buying activity with $428,164 in stock purchases

In recent trading activity, Culp Inc . (NYSE:CULP), currently trading at $5.23 with a market capitalization of $64 million, experienced significant insider buying, as documented in a recent SEC filing. According to InvestingPro data, the stock is trading near its Fair Value. Aron R. English and associated entities, including 22NW Fund, LP, collectively purchased shares of Culp Inc. totaling $428,164. The transactions occurred over three days, from March 10 to March 12, 2025, with stock prices ranging from $4.6457 to $5.0514 per share. While the company maintains a healthy current ratio of 1.68, InvestingPro analysis reveals several challenges, including weak gross profit margins and rapid cash burn.

The purchases were made by 22NW Fund, LP, a significant shareholder of Culp Inc., with English acting as the Portfolio Manager. Following these transactions, the fund holds a total of 1,711,304 shares of Culp Inc. The buying activity suggests a continued interest and confidence in the company’s prospects by these insiders, despite InvestingPro analysis indicating the company is not expected to be profitable this year. Discover more insights and 7 additional ProTips with an InvestingPro subscription.

In other recent news, Culp Inc. reported disappointing financial results for the first quarter of 2025, with earnings per share (EPS) at a loss of $0.33, missing the forecasted EPS of $0.04. Revenue also fell short, coming in at $52.3 million against an expected $62 million. The company reported a net loss of $4.1 million and a 13.5% year-over-year decline in net sales. Despite these setbacks, Culp Inc. remains focused on operational efficiencies and market share growth, particularly in its hospitality contract business, and is optimistic about a return to profitability in fiscal 2026. The company is also exploring potential proceeds from the sale of its Canadian facility, which could further bolster liquidity. Analysts from Water Tower Research noted that Culp Inc. is gaining market share in mattress fabrics and covers, and the company is making strategic moves to navigate tariff impacts and industry consolidation. Additionally, Culp Inc. has announced a $1 million cost-saving initiative related to personnel and professional fees, which is expected to take effect in the fourth quarter.

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