Amy Banse, a director at Lennar (LEN), recently bought 1,575 shares. The buy increased her stake by 14%, and came to a total cost of $247,275.
This marks the first insider activity since last October, when Banse was a buyer of $100,000 of shares. She made five additional buys in the past year. Other company insiders have been small sellers of shares over the same period.
Overall, Lennar insiders own 2.6% of shares.
The homebuilder is having a strong year, with shares up 51%. New home sales have held up well given an overall housing shortage and as existing homeowners have been reluctant to sell.
Lennar’s revenues are up 13%, and earnings have soared 21% in the past 12 months.
Even with the rising prices, Lennar shares trade at 11 times current and forward earnings, or less than half the price of the overall stock market right now.
Action to take: Investors may like shares here, as there’s likely further upside for the homebuilders given the current market dynamics. Lennar also pays a 1.2% dividend yield.
For traders, the June $170 calls, last trading for about $5.20, look like a worthwhile trade here. Shares have recently pulled back from the $170 range, and should look to retest that price in the coming weeks to confirm the uptrend.
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 company mentioned in this article.