Bill Gates, a major owner at Ecolab (ECL), has recently added to his holdings with three buys. The most recent was for 112,325 shares, coming to a cost of $19.6 million.
The second was for 143,879 shares, valued at $25.4 million. The last was for 185,129 shares, valued at $31.8 million. Overall, the recent buys increased his stake by just under 1.5 percent. Other company insiders have been sellers, with insiders mostly being sellers over the past three years.
Overall, company insiders own about 1 percent of shares, while institutional investors own about 90 percent.
The water treatment and infection prevention company is down about 23 percent in the past year. Earnings have been flat, even with a 13 percent rise in revenue.
Action to take: The company has few competitors and an important niche product, which should make it increasingly valuable over time.
The stock yields about 1.2 percent now, and the company has a history of raising its dividend, which is attractive for long-term investors. Investors may get a better entry price in the coming weeks if markets keep declining.
For traders, the trend is downwards right now, even with large buying from a major holder. The January 2023 $140 puts, last going for about $3.60, could deliver mid-double-digit returns in the coming weeks if the market continues to slide.
When market conditions flip to bullish, take the put trade off the table and consider a call option trade.
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.