Gina Boswell, CEO of Bath & Body Works (BBWI), recently bought 6,000 shares. The buy increased her stake by 3%, and came to a total cost of $177,852.
This marks the first insider buy at the company over the past two years. Otherwise, there have been a few insider sales, including a large sale from a director back in June, and a sale from the company CFO in March 2023.
Overall, Bath & Body Works insiders own 0.3% of shares.
The specialty retailer has traded flat over the past year, far underperforming the overall stock market. While the retail space has been challenging, BBWI has worked to improve its back-end operations.
That’s allowed earnings to grow 54% over the past year, even as overall revenues dipped by 2%.
Thanks to the company’s strong earnings, shares trade at just 9 times earnings today.
Action to take: Shares have entered into a new uptrend as of September, after peaking in the spring and trending lower. Investors may like shares here as a momentum trade, as they likely have months of strong performance ahead.
At current prices, BBWI also pays a 2.6% dividend.
For traders, the February $32.50 calls, last trading for about $3.05, could see mid-double-digit returns on a further uptrend in the months ahead. Traders will likely want to take profits early in January, as the holiday season winds down.
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.