This ASX 300 stock has plunged 25% in 2023, and one director is going thrift shopping

Ia it time to pounce on this beaten down ASX 300 stock like an insider just did?

| More on:
A smiling woman with a satisfied look on her face lies on a rug in her home with her laptop open and a large cup on the floor nearby, gazing at the screen. researching new ETFs

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Temple & Webster Group Ltd (ASX: TPW) share price is heading in the right direction again on Thursday.

In morning trade, the ASX 300 stock is up 1.5% to $3.49.

Though, this is little consolation for longer term shareholders that have watched the Temple & Webster share price lose a quarter of its value in 2023.

Why is this ASX 300 stock rising today?

Investors have been buying this ASX 300 stock on Thursday after it revealed that an insider has been buying shares.

According to a change of director's interest notice, the online furniture and homewares retailer's independent non-executive director, Belinda Rowe, has added to her position.

The release notes that Rowe picked up 8,600 shares through an on-market trade on 27 March.

The director paid a total of $30,000 for this parcel of shares, which equates to an average of $3.49 per share.

This more than tripled Rowe's holding to a total of 12,100 Temple & Webster shares.

Should you be buying?

Analysts at Goldman Sachs would approve of Rowe's purchase of shares.

Its analysts are very bullish on this ASX 300 stock and have a buy rating and $6.50 price target on its shares.

Based on the current Temple & Webster share price, this implies potential upside of 86% for investors over the next 12 months.

Goldman is positive on the company's outlook due to its structural growth opportunity. It explained:

The long term structural growth opportunity is unchanged: we forecast a 21% 10-yr EBITDA CAGR driven by consolidation of market share and growing online penetration. TPW is early in its maturity cycle which supports long term sustainable growth. Market share gains are driven by a favourable market structure (with a long tail of small, less well-capitalised competitors), growing online penetration, and TPW's sustainable competitive advantages (scale; dropship inventory; brand; tech capabilities).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

A young man punches the air in delight as he reacts to great news on his mobile phone.
Consumer Staples & Discretionary Shares

A2 Milk shares rocket 18% on guidance upgrade and big dividend news

The infant formula company is finally going to start paying dividends to shareholders.

Read more »

A man in a suit face palms at the downturn happening with shares today.
Consumer Staples & Discretionary Shares

Why is this ASX 300 stock crashing 15% today?

Let's see how this popular stock is performing so far in FY 2025.

Read more »

Happy couple laughing while shopping in supermarket
Consumer Staples & Discretionary Shares

Coles shares: Broker says the 'risk-reward is attractive'

Ord Minnett has good things to say about the supermarket giant following its quarterly update.

Read more »

A man looks a little perplexed as he holds his hand to his head as if thinking about something as he stands in the aisle of a supermarket.
Consumer Staples & Discretionary Shares

Down 20% this year, can Woolworths shares catch a break?

The headlines continue this week.

Read more »

A man looks sadly away from his computer screen as he holds a slice of pizza in his hand with an open pizza box in front of him on his desk.
Consumer Staples & Discretionary Shares

3 reasons this expert is selling Domino's shares now

Down 48% in 2024, why this investing expert recommends selling Domino’s shares.

Read more »

a car driver sits up and looks alert with wide eyes and an expression of concentration while he holds the wheel of a car.
Share Fallers

Why this ASX All Ordinaries stock just crashed 24%!

Investors are punishing the ASX All Ords company today. Let’s find out why.

Read more »

woman holding man's hand as he falls representing ups and downs of ASX investing
Consumer Staples & Discretionary Shares

Why did this ASX 200 stock just crash 11%?

Investors appear nervous about a $475 million acquisition.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

Guess which ASX All Ords share is soaring on 21% FY 2024 growth

Investors are piling into the ASX All Ords share today. Let’s find out why.

Read more »