Sandeep Mathrani, a director at Dick’s Sporting Goods (DKS), recently added 1,300 shares. The buy increased his stake by 16 percent, and came to a total cost of $147,602.
This marks the first insider buy at the company since May 2022. Insiders, including the company CEO and the CFO, have been regular sellers of shares, at prices both above and below the current price.
Overall, company insiders own 3.4 percent of shares.
The sports equipment retailer is up 7 percent over the past year, slightly lagging the overall market.
Retail has been a challenging industry over the past year, amid a rise in retail thefts.
Dick’s has seen earnings drop nearly 25 percent. However, shares trade at just 9 times forward earnings, and overall revenues increased last year. That indicates the company is performing well as a business, even in today’s challenging environment.
Action to take: Shares could outperform the market in the months ahead. Shares are inexpensive, and the end of the year is typically the strongest time for retail stocks. Today’s investors can also get a 3.6 percent dividend yield at today’s prices.
For traders, shares recently dropped after their latest earnings report and now look oversold. The December $130 calls, last going for about $3.60, could see mid-to-high double-digit growth in the months ahead before expiration.
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.