John Stone, President and CEO at Allegion PLC (ALLE), recently picked up 12,500 shares. The buy increased his holdings by 24 percent, and came to a total cost just over $1.03 million.
This marks the first insider buy at the company in over three years. Otherwise, company insiders, nearly all executives, have been sellers of shares over the past three years. That includes sales from the former company President and CEO.
Overall, company executives own 0.5 percent of shares.
Shares of the lock manufacturer are down 20 percent over the past year, just a bit more than the overall S&P 500. That’s about in-line with the company’s 20 percent drop in earnings, although revenue is up 27 percent.
The company’s mechanical and electronic security products are produced under a number of brands and sold globally.
Action to take: The company makes products that are somewhat recession resistant, and shares trade for under 18 times forward earnings here, a reasonable value. Plus, shares yield 1.5 percent here, with a recent increase to the dividend yield.
For traders, the March 2023 $115 calls, last going for about $5.50, offer mid-double-digit returns for investors here. The stock has started a new uptrend, so traders can likely nab profits within a few weeks.
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.