Lynne Puckett, a director at Markel Corporation (MKL), recently bought 75 shares. The buy increased her holdings by 8 percent, and came to a total cost of $100,550.
Other insiders have been buyers this year, including two directors in February, as well as the company CEO. Insiders have generally been buyers over the past year, but were more likely to be sellers two years ago.
Overall, insiders own 2.1 percent of shares.
The property and casualty insurance company is up just 2 percent over the past year. As with other insurance companies, shares have been impacted over the past year as rising interest rates have taken a toll on asset valuations.
At the moment, Markel has been able to offset those losses by increasing its premium growth. That trend can likely continue over time.
Action to take: Long-term investors may fare well with insurance companies right now, as their operations tend to be steady. Plus, when interest rates head lower, portfolio returns can improve, leading to a boost in shares.
Markel doesn’t currently pay a dividend, so income investors may want to look elsewhere.
For traders, the July $1,560 calls, last going for about $4.50, offer mid-double-digit returns on a bounce higher in shares in the coming weeks.
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.