Jose De Nigris, a director at Freightcar America (RAIL), recently bought 4,000 shares. The buy increased his position by 6%, and came to a total cost of $40,741.
The director last bought shares in May 2023, picking up 10,000 shares for $30,000. Around the same time, a major holder also bought 85,412 shares, and the company’s President and CEO bought 32,578 shares for just over $93,000. Two company directors sold small positions earlier this year.
Overall, Freightcar American insiders own 27.1% of shares.
The manufacturer of railcars is up 266% over the past year, even as profitability has been elusive. Revenues rose by 66%, but the company lost $20 million overall.
However, Freightcar could boom with a long-term economic boom underway. And Freightcar has a relatively strong balance sheet, with almost as much cash as debt. Shares trade at an estimated 11 times forward earnings, so look inexpensive here.
Action to take: Shares recently pulled back from 52-week highs, but are likely to resume their uptrend over the coming months. Momentum investors may like shares here.
At present, Freightcar does not pay a dividend.
For traders, the December 2024 $10 calls are already about $0.50 in-the-money. Last trading for about $1.45, traders may see mid-to-high double-digit returns on a further push higher on shares through the end of the year.
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.