Anthony Malkin, a director at APi Group Corp (APG), recently picked up 92,145 shares. The buy increased his stake by a massive 706 percent, and came to a total cost of just under $1.4 million.
That follows up on a number of buys by the director in the past few weeks, and a 37,800 share buy back in June. Going further back, company executives have also been regular buyers of shares, with no insider sales in the past three years.
Overall, company insiders own about 12.2 percent of the company.
Shares of the engineering construction services company are down about 26 percent in the past year. That’s in spite of a 43 percent jump in earnings in the past year, and a 69 percent rise in revenues. The combination of a falling price and improving fundamentals has taken shares to under 10 times forward earnings.
Action to take: The stock will likely fare well as the economy bottoms out and starts to recover, a process that may still take a few months before it gets underway. Investors may want to use down days to accumulate shares, although the stock doesn’t pay a dividend at the moment.
For traders, the January 2023 $22.50 calls, last going for about $0.75, could see mid-double-digit gains on a pop higher in shares. Traders may want to buy on a down day and look to flip the options in a shorter timeframe for a smaller profit amid the current market volatility.
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.