David Calhoun, President and CEO of Boeing (BA), recently bought 25,000 shares. The buy increased his holdings by nearly 24 percent, and came to a total cost of $3.97 million.
He was joined by a company director, who bought 1,285 shares, paying just under $202,000 to do so. This is the last insider activity since February, when two company directors also bought shares, at prices about 15 percent higher than where shares trade today.
Overall, Boeing insiders own 0.1 percent of the stock.
Shares of the airline designer and manufacturer are down 23 percent in the past year. The company has continued to lose money, but revenues did show a modest 4.4 percent rise.
Clearly, Boeing has yet to fully recover from the effects of the pandemic on air travel, and on the company’s Dreamliner safety incidents. But shares may pick up before the business does, given the forward-looking nature of markets.
Action to take: Shares have started to rebound off of their October lows, and still look relatively undervalued given the company’s domestic monopoly on airline manufacturing. However, investors won’t get paid a dividend to wait.
For traders, shares are in an uptrend. The March 2023 $200 calls, last going for about $8.40, offer mid-double-digit return potential if the current rally continues.
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.