Jorge Gonzalez, President and CEO of The St. Joe Company (JOE), recently bought 1,695 shares. The buy increased his stake by 3%, and came to a total cost of $89,920.
This is the first insider buy since Gonzalez bought 1,200 shares for just under $55,000 back in June 2023. Otherwise, Bruce Berkowitz, a major holder and director, has been a steady seller of shares, but still holds nearly 18.4 million.
Overall, St. Joe insiders own 0.3% of shares, and major holders own 86.3% of shares.
The Florida-based property owner and developer is up 7% over the past year, far underperforming the overall stock market.
A slow real estate market has slowed development activity, with earnings down 13% over the past year, and revenues down 2%.
Plus, while St. Joe has significant land holdings, shares trade at over four times their book value, suggesting that they may still be overbought if the real estate market remains slow.
Action to take: St. Joe shares are now in a downtrend, and interested investors can likely start building a stake under $50 per share. At current prices, St. Joe pays a 1.1% dividend.
For traders, with shares trending lower, the March 2025 $50 puts, last trading for about $2.55, could see mid-to-high double-digit returns depending on the extent of a selloff. Traders should look for signs of a potential reversal to exit the trade and potentially go long.
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.