Stephen Adams, a director at Camping World Holdings (CWH), recently bought 200,000 shares. The buy increased his total holdings by 400 percent, and came to a cost of just over $4.9 million.
That follows on a number of insider buys from the company CEO in September, who paid anywhere from 2 to 15 percent more for the shares that he bought. Company insiders have been both buyers and sellers over the past year.
Overall, the pattern of insiders selling at higher prices and buying at lower ones looks like a good use of the insider’s knowledge as to when there’s a relative value in the company shares.
Shares of the manufacturer of recreational vehicles soared as camping popularity surged in 2020. Shares went from a panic-low of $3.40 per share to $42 before pulling back to the current price around $28.50.
Action to take: Given the company’s low price to earnings and 3.5 percent dividend yield, investors may want to consider buying shares here, as the company’s relative outperformance in the years ahead is likely.
For traders, insider buying shows company insiders expect a move higher here. The March 2021 $30 calls are near-the-money and could easily move in-the-money, offering options buyers high-double to low-triple-digit return potential. The options last traded with a bid/ask spread near $4.20 per contract.