Corie Barry, CEO of Best Buy (BBY), recently bought 13,500 shares. The purchase increased her stake by 4%, and came to a total cost of $984,420.
This marks the first insider pickup at Best Buy over the past two years. Barry was even a seller of shares back in September, at a price over $20 higher from the current level. Most insider sales were direct sells, although a few included a mix of option exercises.
Overall, Best Buy insiders own 8.8% of shares.
The electronics retailer is down 10% over the past year, with shares sinking in recent sessions amid fears of higher tariff rates on foreign goods such as electronics.
Best Buy has also struggled operationally, with revenues dropping 5% and earnings growth sliding 75% amid lower consumer spending on goods.
Shares now trade at 11 times forward earnings, and over 30% from their 52-week highs, and could be set for a rebound rally in the weeks ahead.
Action to take: Investors may like shares here as an undervalued large cap play, and could likely see low-double-digit returns on shares if there’s a market rebound.
Best Buy is a dividend growth stock, and current yield is a hefty 5.4%.
For traders, a potential rebound in the weeks ahead bode well for call options. The April $75 calls, last trading for about $1.25, could see mid-double-digit returns in the coming weeks.
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.