Mike Spanos, a director at Casey’s General Stores (CASY), recently bought 500 shares. The buy increased his stake by 19%, and came to a total cost of $198,380. Spanos was the last insider to buy with a 267 share pickup back in September.
Otherwise, there has been four sales over the past year, including the company President & CEO, for over $5 million, and the company COO for over $2 million. All sales occurred following the exercise of stock options.
Overall, Casey’s General Stores insiders own 0.6% of shares.
The owner and operator of convenience stores has been expanding its footprint massively in recent years, and investors have been rewarded with a 45% increase in shares.
Operationally, returns have been sluggish. Earnings grew by just 7% over the past year, amid a 6% increase in revenues.
Following its run higher, Casey’s shares now trade at 28 times earnings, a slight premium to the overall market.
Action to take: Given the company’s business model and low profit margin potential, investors should wait for a pullback before buying into shares. The valuation is rich right now, and Casey’s shares only pay a 0.4% dividend at current prices.
For traders, shares look ready to consolidate after a big run higher. The February $370 puts, last trading for about $3.35, could see mid-double-digit returns on a pullback over 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.