Christopher Boerner, CEO of Bristol Myers Squibb (BMY), recently bought 3,071 shares. The buy increased his holdings by 4 percent, and came to a total cost of $150,049.
The buy came a week after a company director bought 8,500 shares, paying just under $424,000. The last insider Activity was in August, when two VPs sold shares at a price more than $10 higher from where BMY trades today. And going further back, other insiders have been sellers at higher prices.
Overall, BMY insiders own 0.1 percent of shares.
The drug manufacturer is down about 40 percent over the past year. Revenues are down 2 percent, although the company has kept costs in line, which has helped earnings grow by 20 percent.
This improving earnings amid the share price drop has taken the stock to less than 7 times forward earnings, which could make shares a contrarian buy here.
Action to take: Investors may like shares here for a rebound play. The drop in share price has pushed BMY’s dividend up to 4.6 percent.
For traders, shares have been trending lower all year, but have started to show some support near the current price. That could mean a trend higher in the months ahead.
The April 2024 $52.50 calls, last going for about $1.70, could see mid-double-digit returns in the months ahead from such a rally higher.
Disclosure: The author of this article has no position in the company mentioned here, and does not intend to trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.