Michael Volkema, a director at Millerknoll (MLKN) recently added 13,584 shares. The buy increased his position by 7 percent, and came to a total cost of $230,426.
He was joined by 3 other directors, who bought on the same day at different prices. The smallest insider buy came to just under $21,000. Company executives have been buyers in the past year as well, with MillerKnoll’s President and CEO picking up shares last October, at a price near that of today’s.
Overall, insiders own 0.6 percent of the furnishing and décor design and manufacturing company.
Shares are down 10 percent so far this year, but have been trending higher since setting a low in late May. Revenues have dropped 13 percent over the last year, and MillerKnoll is just getting back to profitability.
Action to take: Shares look reasonably attractive at 9 times forward earnings estimates, provided the company can get back to profitability. The stock pays a 4.2 percent dividend at today’s prices. If the company can’t improve its revenues, however, it may have to trim that dividend in the future.
For traders, the current uptrend is likely to continue. The November $20 calls, last going for about $1.10, could see mid-to-high double-digit gains in the coming months.
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.