Gregory Lucier, a director at Dentsply Sirona (XRAY), recently added 6,000 shares. The buy increased his holdings by nearly 20 percent, and came to a total cost just under $189,000.
This marks the first insider buy at the company in nearly a year. This year has seen one other insider transaction, with the sale of shares from a director. Over the past three years, insiders, mostly company directors, have been inclined to be sellers rather than buyers of shares.
Overall, insiders at the dental equipment manufacturer own about 0.4 percent of the company.
Shares are down 42 percent in the past year, as revenue has slid by nearly 20 percent and as the company has seen its earnings shrink. The recent decline in shares has taken the stock back to a valuation last seen in 2009.
Action to take: There’s likely steady demand for dental health products, and shares have had a rather steep slide out of proportion to the decline in business in the past year.
That makes shares look like an interesting contrarian buy here. Shares also yield about 1.6 percent at current prices, giving investors who accumulate shares now some income while they wait.
For traders, the April 2023 $35 calls, last trading for about $1.60, could be big winners here on a rebound in shares. The stock has started heading higher in recent days, so traders can look for a big one-day gain and cash out quick profits, or hold on for a longer swing higher.
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.