Amy Lane, a director at FedEx (FDX), recently bought 333 shares. The buy increased her stake by 8%, and came to a total cost $91,929.
This marks the first insider buy in a year, when the company’s CFO bought 1,000 shares, paying $252,020 to increase his stake by 27%. Lane was also a buyer of shares a year ago, paying $50,643 to increase her stake by 6%. Otherwise, FedEx insiders have generally been sellers.
Overall, FedEx insiders own 8.2% of shares.
The shipping and logistics company is up 10% over the past year, lagging the overall market. Operationally, FedEx has had a mixed year, with revenues up 14%, but overall earnings down 11%, reflecting higher costs.
However, FedEx shares are reasonably valued at 14 times forward earnings, and the company is a leader in the shipping and logistics space. A growing economy is likely good for shares, which could build on their success next year.
Action to take: FedEx shares have been somewhat rangebound over the past year. Investors who buy now should look for a quick 10% profit to the $300 range, where shares have historically struggled.
While waiting for that to happen, investors can also get a 2% dividend.
For traders, shares look ready to trend to the higher end of their range. The March $300 calls, last trading for about $8.75, could see mid-double-digit returns. Traders should look to take profits if shares move in-the-money.
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.