ADV

Advantage Solutions ($ADV) Insiders Double Down with Heavy Buying Amid 63% Stock Plunge... Former Gillette CEO Kilts Leads May Purchasing Spree

06/02/2025 21:20

Advantage Solutions ($ADV), a retail services company, has been drawing market attention as company insiders continue aggressive buying amid a steep stock decline. While shares have plummeted over 63% from $3.24 in June 2024 to $1.19 at the end of May 2025, company executives and directors have been actively purchasing shares, presenting a stark contrast to the market sentiment. Advantage Solutions provides marketing services, sales support, and technology solutions for retailers, serving as a crucial link between major consumer goods brands and retail companies. The company works with large retailers like Kroger and Walmart, as well as global brand companies such as Nestlé and Procter & Gamble, providing marketing services and consumer insights. The most notable activity comes from Director James Kilts, who has been on a buying spree since March. Kilts purchased over 300,000 shares from March through May, with particularly concentrated buying in May alone. Between May 15-30, he bought approximately 200,000 shares at prices ranging from $1.08 to $1.28, investing over $300,000. Kilts, a former CEO of Gillette and former Chairman of Kraft Foods, brings over 40 years of experience in the consumer goods industry and is renowned as a turnaround specialist. CEO David Peacock has also shown consistent buying behavior. Starting with a 40,000-share purchase at $2.79 in June 2024, he continued buying in September and November, and made a significant 70,000-share purchase in March 2025 when the stock hit $1.74. CFO Christopher Growe also joined the buying activity in March, purchasing approximately 10,000 shares at prices between $1.59-$1.75 during the stock's steep decline. These insider purchases gain significance as they occurred during a period of challenging financial performance. Advantage Solutions has faced consecutive quarters of revenue decline and earnings disappointments. Q1 2025 revenue fell 6.5% year-over-year to $821.79 million, with an adjusted loss of 11 cents per share, significantly missing analyst expectations of 6 cents earnings per share. The company is currently undergoing business simplification through strategic divestitures. In June, it sold content management platform The Data Council to SPINS and divested analytics business Strong Analytics to OneSix. Through these non-core asset sales, management aims to focus on core operations and improve profitability. The retail services industry faces broad challenges. E-commerce growth has led traditional retailers to reduce marketing budgets, while inflation and consumer spending slowdown have curtailed promotional activities by brand companies. Competitors like Acosta and Crossmark are experiencing similar difficulties. However, the insider buying activity signals confidence in the company's long-term value. Kilts' extensive purchasing is particularly noteworthy given his decades of experience in consumer goods and reputation as a turnaround expert, suggesting strong belief in the company's recovery potential. Analysts currently maintain a 'hold' rating on Advantage Solutions with a 12-month price target of $4.50, indicating significant upside potential from current levels. While 2025 revenue is expected to decline slightly or remain flat year-over-year, analysts anticipate recovery beginning in 2026 as restructuring benefits materialize. Investors should monitor whether this insider buying represents opportunistic bottom-fishing or genuine confidence in fundamental improvement. The company's next quarterly earnings report and progress on restructuring initiatives will be crucial factors determining the stock's direction.

You can receive notifications when news is published.