Darrell Bracken, President and CEO of
VFC Corp (VFC), recently bought 75,200 shares. The buy increased his position by 52%, and came to a total cost of $997,408.
This is the first insider buy since February, when a director bought 20,000 shares, paying $310,620 to do so. Other directors have been buyers over the past year, with one buying 40,000 shares. Over the past two years, there has been one insider sale for just four shares.
Overall, VFC insiders own 0.9% of shares.
The apparel manufacturer is down 30% over the past year. Slowing consumer spending and higher costs from inflation have hit VFC. Revenues are down nearly 15%, and VFC failed to turn a profit last year.
Plus, VFC has a sizeable amount of debt relative to its current market cap. But if it can turn around on revenues, shares should hold up just fine.
Action to take: Shares trade at 17 times forward earnings, a reasonable price if VFC can start to turn a profit again. VFC also pays a 2.7% dividend at current prices, after cutting its payout last year.
Speculative investors could see double-digit returns from shares in the months ahead.
For traders, shares are near their 52-week lows, but have started to trend higher in recent sessions. The August $15 calls, last trading for about $0.75, could see mid-double-digit returns 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 company mentioned in this article.