Bruce Evans, a director at Analog Devices (ADI), recently picked up 3,650 shares. The buy increased his stake by 3.6 percent, and came to a total price just over $526,000.
This marks the first insider buy at the company since last October. Company insiders, including c-suite executives and directors, have been regular sellers of shares of the semiconductor firm over the past three years, with only a few buys from insiders.
Overall, insiders at the company own 0.4 percent of shares.
Shares of the company are down about in line with the overall stock market over the past year. But earnings are up 85 percent, and revenues are up about 79 percent in the same time. That mismatch in growth and a price drop has taken the company from 47 times earnings to 16 times forward earnings.
Action to take: Shares look attractive for a rebound. The company is also a dividend growth play, yielding about 2.1 percent for investors now. Investors may want to start accumulating shares, looking to buy on down days for the stock to take advantage of current market conditions.
For traders, the January $180 calls, last going for about $4.00, offer a mid-to-high double-digit returns on a rebound in shares. As with buying shares right now, traders may want to scale into the trade on down days and look to take smaller profits on mini-rallies along the way.
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.