Edward Ludwig, a director at CVS Health Corp (CVS), recently added 1,000 shares. The buy increased his holdings by 3.5 percent and came to a total price of just under $106,000.
The director was also responsible for the last insider buy at the company last August, with a 3,000 share pickup for just under $239,000. Otherwise, company insiders have largely been sellers at the drugstore chain.
Overall, insiders at the company own just under 0.2 percent of shares.
The drugstore chain is up nearly 48 percent over the past year, more than triple the return of the S&P 500 in the same timeframe. Even with that return, shares trade for less than 13 times forward earnings.
Action to take: Shares look like a solid value play here and have been performing well. And with a profit margin under 3 percent right now, there’s room for further improvements in operations to further boost the share price. Investors can even grab a starting yield of 2.1 percent right now, with a history of increased dividend growth.
For traders, shares are likely to continue their long-term uptrend. That bodes well for a call option trade. The June $110 calls, last going for about $3.30, look capable of generating mid-to-high double-digit returns on a further rally in shares.
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.