Steven Demetriou, a director at Arcosa (ACA), recently bought 6,000 shares. The buy increased his position by a massive 152%, and came to a total cost of $526,200. The buy comes a month after the company CEO bought 12,125 shares, paying just under $995,000 to increase his stake by 3%.
These are the only insider buys over the past two years. Otherwise, company insiders have been sellers of shares, including the company CEO in 2023, and the company’s CFO in late 2022.
Overall, Arcosa insiders own 1.3% of shares.
The engineering and infrastructure products firm is up 17% over the past year, lagging the S&P 500. Revenues rose 14% last year, and earnings rose by 12%.
The company is likely a strong play on future infrastructure spending, which may be highlighted in the coming months following the next election. Shares trade at 21 times forward earnings, about in-line with the overall stock market.
Action to take: Investors who expect infrastructure spending to remain strong can likely see a catch-up rally with Arcosa in time. At current prices, shares also pay a 0.2% dividend.
For traders, shares have been in a strong uptrend this year, and the trend looks ready to push higher in the months ahead. The February 2025 $100 calls, last trading for about $2.95, could see high double-digit returns on a continued rally. Just note that the options are thinly traded.
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.