Kyle Gendreau, a director at Caleres (CAL), recently bought 5,000 shares. The buy is a new stake for the director, who paid $99,661 for the stake.
This marks the first insider buy in nearly six years, since the company President and CEO bought 2,000 shares. Otherwise, company insiders have been slight sellers of shares over the past two years, with the company’s Executive Chair selling a hefty stake.
Overall, Caleres insiders own 3.2% of shares.
The footwear retailer is down 37% over the past year. Consumer spending has been mixed, with less spending on items like clothes in favor of more spending on expensive experiences like concerts and vacations.
That’s reflected with a 12% drop in earnings at Caleres last year, and revenue dropping 2%. Given that footwear is an essential piece of clothing, that’s a notable trend. Still, Caleres is a reasonable value play here, with shares trading at five times earnings.
Action to take: Caleres shares have been in a steep decline since the summer. They’re now back to around their five-year trading average, and may see a short-term oversold bounce here, making for an interesting speculation and value play here.
At current prices, Caleres pays a 0.8% dividend.
For traders, the May $22.50 calls, last trading for about $1.30, could see mid-double-digit returns if shares stabilize from here and have an oversold bounce in the months ahead.
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.