Deirdre Connelly, a director at Lincoln National Corp (LNC), recently bought 3,000 shares. The buy increased the director’s holdings by 300 percent, and came to a total cost just over $112,000.
This marks the first insider buy at the company of any sort since May 2020 during the pandemic selloff low. Otherwise, company executives and directors have been sellers of shares over the past two years
Overall, insiders at the life insurance company own 9.5 percent of shares.
The share price has dropped 45 percent in the past year. Revenue is down 9 percent, and the company has flipped to a loss in recent quarters.
However, shares do trade at just 4 times forward earnings, and the company trades at its lowest valuation relative to revenue in the past two years.
Action to take: Shares recently dropped on earnings, and are starting to move back higher. This could present buyers with a chance to start grabbing the company’s 4.7 percent dividend. While it hasn’t been raised in over a year, as the company returns to profitability it could grow in the future.
For traders, the move off of the recent lows is likely to continue. The April 2023 $45 calls, last going for about $1.90, offer high double-digit return potential on a strong enough rally in shares in the coming 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.