Lawrence Hilsheimer, CFO at Greif (GEF), bought 2,210 shares in two transactions in the last week of December. The buys increased his position by just under 2 percent, and came to a total cost just under $150,000.
The CFO was a buyer and seller of shares earlier in 2023 as well. A few other company insiders were active, mostly as sellers, with one notable buy from the company’s Chief Supply Chain Officer.
Overall, Greif insiders own 4.9 percent of shares.
The packaging and container producer slipped 2 percent in 2023, even as the overall stock market rallied an impressive 24 percent.
With consumer spending on goods trending relatively lower last year, it’s no surprise that Greif saw earnings slide 32 percent, and revenues dipped by 13 percent.
However, shares trade at 10 times earnings, and shares trade for about 0.7 times their price to sales, indicating a potential bargain here. If consumer spending on goods picks up, shares may be set for an above-average return this year.
Action to take: At current prices, Greif pays a 3.2 percent dividend yield. And that yield has grown gradually over time, with ample earnings to cover the dividend payment. Long-term investors may like shares at current prices or on any drop.
For traders, shares have been trending somewhat higher in recent weeks. The April $70 calls, last going for about $2.50, could see mid-double-digit returns in the coming months on a continued rally higher.
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 companies mentioned in this article.