Mark Miller, President and COO of Goosehead Insurance (GSHD) recently bought 10,000 shares. The buy increased his stake by 50%, and came to a total cost of $580,650.
This is Miller’s second buy of the year following a 5,000 share pickup in January for $369,725. And other company insiders, including the company CFO have been buyers so far this year. One major holder, a trust, has been a moderate seller of shares so far this year.
Overall, Goosehead insiders own 3.6% of shares.
The insurance company is down 3% over the past year, far underperforming the overall market.
Operationally, things are improving with shares seeing an 11.6% rise in revenue growth. And the stock is moving from 90 times earnings to 30 times earnings as operations improve.
Insurance companies are seeing some customers scale back on services as insurance premiums have soared in recent years.
However, insurance company portfolios have also improved as the stock market has rebounded and interest rates have trended higher.
Action to take: Goosehead shares just had a massive drop in recent months, and shares appear to be looking for a bottom. Investors may like shares as they have double-digit bounce potential from their current level.
For traders, the June $65 calls, last trading for about $1.50, could see mid-double-digit returns on an oversold bounce in 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.