Bradley Soultz, CEO of WillScot Holdings (WSC) recently bought 5,000 shares. The buy increased his stake by 1%, and came to a total cost of $194,855.
Soultz was also the last buyer of shares with a 5,000 share buy back in May, which came to around $192,000. And the CEO has been a steady buyer going back into 2023. There has been one insider sale over the past year from a company director.
Overall, insiders at the workplace and storage rental service company own 2.6% of shares.
WillScot shares are down 6.3% over the past year. While the company is likely to benefit from the infrastructure and construction boom underway, WillScott has had a lackluster year, with no earnings growth and revenues rising just 4%.
Shares trade at a pricey 40 times earnings, and shares are just slightly off their 52-week low.
Action to take: Investors may want to avoid shares for now, given the long-term downtrend in shares. As soon as WillScot can show some improving profitability, the trend may change and then it will be safe for investors to build a stake.
With the current share price weakness in mind, traders may want to look at a put option trade. The January 2025 $35 puts, last trading for about $1.55, could see mid-double-digit returns on a further rally ahead for shares.
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.