Persio Lisboa, a director at J.B. Hunt Transportation Services (JBHT), recently bought 600 shares. The buy increased the director’s stake by 20%, and came to a total cost of $98,082.
This is the first insider buy since April, when the company CEO bought 6,200 shares, paying just under $999,000 to do so. And another company director bought shares in March. Otherwise, company insiders have largely been sellers over the past two years, and usually following the exercise of stock options.
Overall, JBHT insiders own 19.8% of shares.
The trucking company’s shares have declined 17% over the past year, compared to an overall gain of 21% for the S&P 500 index. Investors have been wary of declining demand for transportation services.
That’s reflected in JBHT’s financials. Earnings are down 28% over the last year, and revenues are off by 7%. However, a few competitors have closed operations over the last year, and one industry analyst sees the space on the cusp of recovery.
Action to take: If JBHT can see its earnings and revenue rise again, shares can likely trend higher. Shares also pay a 1.1% dividend at current prices.
For traders, shares have started to trend higher in recent weeks from near their 52-week lows. If it’s the start of a new bull market, a call option trade could fare well. The November $180 calls, last trading for about $5.00, could see mid-to-high double-digit returns.
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.