Loews Corp, a major owner of CNA Financial Corp (CNA), recently added 168,099 shares. The buy increased the investment firm’s ownership by 0.1 percent, and came to a total cost just over $6.5 million.
This is the first insider activity at the company since May, when one EVP sold some shares, while a company director was a buyer. Looking further back, company insiders have been regular and small sellers of shares, while institutional buyers have been consistently adding to their stake.
Overall, company insiders own 0.3 percent of shares, while institutions own about 99 percent of shares.
The property and casualty insurance company has seen shares drop 11 percent in the past year, as rising interest rates have led to a slowdown of earnings by 44 percent.
Action to take: Investors may like shares here, as the company may be taken private eventually, likely requiring a premium. Even such an event years down the line, shares are inexpensive at 10 times earnings. The stock also offers a 4.1 percent growing dividend here.
For traders, the stock has been trending down in the very short term. A trade like the November $35 put, last going for about $1.50, could deliver mid-double-digit returns on a further decline in the coming weeks. Traders should look to take quick profits, then flip to call options following a further market decline.
Disclosure: The author of this article has no position in the companies mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.