Skullcandy Surges after Insider Trade
Shares of Skullcandy (NASDAQ: SKUL) are seeing much strength during Monday's trading session after the company's Vice President of Finance and Principal Accounting Officer Ron Ross disclosed in a filing today that he bought 18,000 shares of the company's common stock on May 10th.
Obviously this is an important event, when insider buys large blocks of shares, it could bode well for the future of the company, since insiders usually know best. It also could mean that shares are valuable at current levels.
Recently, Morgan Stanley has also been pretty bullish on the name, when they published a research report on April 30th commenting that they remain bullish after store checks.
In the report, Morgan Stanley wrote, "Observations suggest consumers increasingly buying headphones when purchasing smartphones. Retailers seeing less price resistance for high-end product. We think SKUL is taking share at BBY and at least maintaining share elsewhere. New packaging transition seemingly going smoothly."
Skullcandy also has a large short interest in its shares with short float over 50%. Going forward, investors may begin to start covering their shorts, which would cause shares to continue to rise.
Currently, shares of Skullcandy are trading about 8.6% higher at $14.20 per share.
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