Kent Masters, Chairman, President and CEO at
Albemarle Corp (ALB), recently bought 5,241 shares. The buy increased his holdings by over 49 percent, and came to a total cost of just under $1,000,000.
He was joined by company president Netha Johnson, who picked up 1,060 shares at a cost of just under $188,000. The buy increased the President’s stake by about 17 percent.
Overall, company insiders own just 0.3 percent of company shares.
The stock is up about 23 percent in the past year, nearly double the return of the S&P 500 over the same timeframe. The company tends to trade in line with the overall economy, so it’s no surprise that shares have done well, even as the company’s performance has been relatively flat operationally over the past year.
Action to take: The specialty chemical company has seen revenue and earnings barely move in the past year. While the stock is a bit expensive at 32 times forward earnings. However, the company has reinstated its dividend, with a 0.8 percent annual dividend at current prices.
Traders may like the June $220 calls. Last going for about $10.20, the option could deliver mid-to-high double-digit gains in the next few months. That would also imply a move in shares back to near their all-time highs before a recent selloff.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.