Teresa Harris, a director at Ziff Davis (ZD), recently bought 1,000 shares. The buy increased her stake by 10%, and came to a total cost of $46,760.
This marks the first insider buy since May 2023, when several company insiders, including both the CEO and CFO, picked up shares. There was one insider sale by an EVP earlier in the year, for just under $290,000, but that insider also bought shares at a far lower price in 2023.
Overall, Ziff Davis insiders own 2.8% of shares.
The advertising agency is down nearly 30% over the past year. Ad spending has been down across the economy as a whole, although Ziff Davis only saw their revenues drop by about 2%. Meanwhile, they managed to increase earnings by a massive 121%.
That’s pushed shares to about 7 times forward earnings. And any improvement in the advertising market could see shares push far higher.
Action to take: Ziff Davis shares hit a 52-week low in early August and have now started to trend higher. Momentum investors may like shares over the coming months for further upside. At present, shares do not pay a dividend.
For traders, the December $55 calls, last trading for about $1.85, could see mid-to-high double-digit returns depending on how much shares rally into the end of the 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.