James Defranco, a director at DISH Network Corp (DISH), recently picked up 35,260 shares. The buy increased his holdings by 2.1 percent, and came to a total price of $664,700.
This follows up on a prior buy from the director this month, for 4,307 shares valued at just over $80,000. And the director picked up 1,250,000 shares back in May, at a cost of just over $24 million. Going further back, company insiders were more likely to be sellers.
Overall, company insiders own about 14.1 percent of shares.
The wireless and pay-tv services company has seen shares lose over 50 percent of their value in the past year. That’s far in excess of the company’s 22 percent drop in earnings and 6 percent drop in revenue.
The drop in shares has taken the stock from 14 times earnings to about 7 times forward earnings. Shares also trade at less than two-thirds their book value, and at just 0.7 times their price to sales.
Action to take: The company looks inexpensive on a valuation basis, and in a bull market could quickly deliver double-digit gains in shares. Buyers today should have such a chance in the coming months. The stock does not pay a dividend at this time.
For traders, the December $25 calls, last going for about $1.07, offer a mid-double-digit return in the coming months on a rally in shares. Traders should look to take quick profits in today’s markets.
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.