Rodney McMullin, a director at VF Corp (VFC) recently bought 3,000 shares. The buy increased his stake by nearly 12 percent, and came to a total cost of just under $150,000.
That’s the fourth such buy from the director this year. The other three buys were also for 3,000 shares each. Going further back, there’s a mix of both insider buying and selling, by both directors and C-suite executives.
Overall, company insiders own about 5.5 percent of shares.
Shares of the apparel manufacturer have lost just over one-third of their value in the past year. Earnings have dropped 10 percent, even as revenue has increased by about 10 percent. However, shares have gone from 90 times earnings a year ago to trading at 13 times forward earnings today.
Action to take: While apparel can be a low-margin industry, VF Corp has a number of brands in its collection that can likely help it earn a consistent return over time, which should be beneficial to shareholders in the long term. The stock also yields about 4 percent here, and shares have a slight history of dividend growth.
For traders, shares appear to have slowed down their decline in recent weeks and may be in the early stages of an uptrend. The August $55 calls, last going for about $1.35, can likely return mid-to-high double-digit returns in the coming weeks if shares follow through with a rally.
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.