David Wenner, a director at B&G Foods (BGS), recently added 20,000 shares. The buy increased his holdings by nearly 2.7 percent, and came to a total cost just over $280,000.
Insiders aren’t particularly active at the company. This marks the first insider buy at B&G Foods since March 2020. Otherwise, one company director and one executive were modest sellers of shares in the past two years until this latest buy. The sales were made at a far higher price.
Overall, company insiders own 2 percent of the company.
Shares of the packaged food company are down over 55 percent in the past year. While revenue is slightly up, the company has lost money overall in the past year amid rising food prices.
The drop in shares amid this poor performance has taken shares from 26 times earnings last year, to 12 times forward earnings in the most recent quarter.
Action to take: Shares have been knocked back to five-year lows on par with where the company was trading in March 2020. The stock looks well oversold from here, and buyers who accumulate shares here will likely be paid well over time. Plus, shares pay a 5.6 percent yield at current prices.
For traders, the May 2023 $15 calls, last going for about $1.05, offer high double-digit returns on a rebound in shares at any point over the next six months.
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.