Joseph Lachner, President and CEO of
Kemper Corporation (KMPR), recently bought 5,000 shares. The buy increased his stake by 4 percent, and came to a total cost of $216,000.
The buy came after two directors also picked up shares in the prior week, with one director buying 10,000 shares at a cost just under $414,000. Going further back, company insiders have a more mixed track record of buys and sells.
Overall, Kemper insiders own 4.7 percent of shares.
The property and casualty insurance company is down about 25 percent over the past year.
The company has lost money, with revenues down 11 percent. Rising interest rates have impacted profitability for insurance companies.
With that pullback, shares trade slightly over their book value, and Kemper trades at about 12 times forward earnings estimates.
Action to take: With interest rates near or at a peak this cycle, insurance companies should see improving conditions into next year. At current prices, Kemper looks like a reasonable buy, and shares pay a 2.9 percent dividend.
For traders, the April 2024 $45 calls, last going for about $2.85, could see mid-double-digit gains. Options are thinly traded, so traders should exercise caution by taking a smaller position size than they would otherwise, and look to take profits quickly.
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 of the companies mentioned in this article.