The Ardent Leisure Ltd (ASX: ALG) share price climbed 4.74% higher yesterday as one of the company's directors bought a sizeable portion of the company's shares on-market.
What did Ardent Leisure announce?
The only company-specific news out for Ardent Leisure yesterday was a Change of Director's Interest Notice for company director Brad Richmond.
Mr Richmond purchased 261,550 shares on-market at an average price of $1.15 per share, with the share price currently trading at $1.22 per share as at yesterday's close.
Significant internal transactions are generally seen as a sign of internal confidence in the company's long-term future as well as an undervaluation of the company's current share price.
Is Ardent Leisure in the buy basket?
The Ardent Leisure share price has fallen 15.3% so far this year after relisting under its new ALG ASX code in November 2018.
Following the Dreamworld Thunder River Rapids ride tragedy in October 2016, the company saw its share price under the AAD ASX code fall 22% in 3 days amid the fallout and ongoing investigation.
The company's share price is down 25% since reporting its half-year result in late February, punctuated by a 14.6% drop in group revenue and a 39.7% increase Ardent Leisure's net loss after tax.
I'm not particularly bullish on the Consumer Discretionary sector in 2019 given the potential for significant revenue declines in the event of an economic downturn or financial stress in the economy.
I'd instead be looking at the likes of AGL Energy Ltd (ASX: AGL) for non-cyclical income hedging or Afterpay Touch Group Ltd (ASX: APT) for a more aggressive growth option to boost portfolio gains.
For those looking for a more high-risk, high-reward growth play, this top-rated stock in a booming new-age industry could be the perfect portfolio fit.
