Larry Fitzgerald, a director at
Dick’s Sporting Goods (DKS), recently bought 230 shares. The buy increased his stake by 2%, and came to a total cost of $49,463.
This marks the first insider buy at the company since March, when a major holder bought 40,000 shares at a cost of just over $8.5 million. Otherwise, company insiders have been regular sellers of shares, including both regular sales and following the exercise of stock options.
Overall, Dick’s Sporting Goods insiders own 3.7% of shares.
The sporting goods retailer is up about 50% over the past year, outperforming the overall stock market and faring well in a challenging reail environment. Revenues are up about 8%, but earnings have jumped 48%.
Even with that move higher in earnings, shares still trade at a meaningful discount to the overall stock market at 14 times earnings.
Plus, Dick’s started paying a dividend, which comes to a 2% yield at today’s prices.
Action to take: Shares have been somewhat rangebound over the past few months, but could perk up in the coming weeks for the holiday season. If that momentum takes off, investors could see low double-digit returns buying shares.
For traders, the January 2025 $230 calls, last trading for about $3.55, could see mid-double-digit returns from a boost in shares during any year-end Santa Claus rally.
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.