Ross Jack, CEO and Chairman of Synergy CHC Corp. (OTC:SNYR), recently acquired 300,000 shares of the company's common stock at a price of $9 per share, amounting to a total of $2.7 million. These shares were acquired indirectly through Rosscor Brands Corp., which Jack controls. Following this transaction, Jack holds a significant indirect stake in the company through various entities, including Gowan Private Equity Inc., Dunhill Distribution Group, Inc., and Gowan Capital Inc.
InvestingPro Insights
To provide additional context to Ross Jack's recent share acquisition, let's examine some key financial metrics for Synergy CHC Corp. (OTC:SNYR) from InvestingPro.
The company's P/E Ratio (Adjusted) for the last twelve months as of Q3 2023 stands at 0.37, indicating that the stock is trading at a very low multiple of its earnings. This could suggest that the market is undervaluing the company's current profitability, which may have influenced Jack's decision to increase his stake.
Interestingly, SNYR's Price to Book ratio for the same period is -0.07, a highly unusual figure that implies the company's market capitalization is less than its book value. This negative ratio could be a sign of financial distress or significant undervaluation, potentially explaining why the CEO sees an opportunity in acquiring more shares.
On a positive note, Synergy CHC Corp. boasts a robust Operating Income Margin of 24.04% for the last twelve months as of Q3 2023. This healthy margin suggests that the company is efficient in its core operations, which could be a factor in Jack's confidence in the company's future prospects.
InvestingPro Tips highlight additional insights that could be relevant to this insider buying activity. For instance, one tip notes that SNYR has a high return on invested capital, which aligns with the strong operating margin we observed. Another tip indicates that the company's earnings per share have shown strong growth over the past year, potentially justifying Jack's increased investment.
These InvestingPro Tips are just a sample of the valuable insights available. InvestingPro offers 11 additional tips for Synergy CHC Corp., providing a more comprehensive analysis for investors looking to understand the company's financial health and market position.
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