Alfred Zollar, director at Nasdaq (NDAQ), recently bought 2,542 shares. The buy increased his stake by 5%, and came to a total cost of $203,970.
This marks the first insider buy since October 2023, when a different director bought shares. The company’s CEO was also a buyer of 10,000 shares last July. Otherwise, there have been periodic sales by insiders over the past year, largely at the EVP level.
Overall, Nasdaq insiders own 10.8% of shares.
The capital markets operator is up 46% over the past year, outperforming the overall stock market. Nasdaq operates several global market exchanges, and focuses more on high-growth tech opportunities.
The stock market rally over the past two years has been good for trading volume, as evidenced by Nasdaq’s 31% jump in revenues. Overall earnings are up about 4% as well.
Even with the big rally in shares, Nasdaq trades at 25 times forward earnings.
Action to take: Shares can likely continue to trend higher as the stock market heads higher and traders remain active in investing. At current prices, Nasdaq also pays a 1.2% dividend.
For traders, shares are in a strong uptrend. The January $80 calls, last trading for about $2.65, are an at-the-money trade that could see mid-double-digit returns from a further rally in Nasdaq shares into early next year.
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.