Chubb Caldecot, a director at Flowers Foods (FLO), recently added 2,000 shares. The buy increased his holdings by 8.7 percent, and came to a total cost just under $57,000.
This is the first insider buy since the director last bought shares in August, picking up 3,000 shares for just over $82,000. Over the past year, there have been a number of large insider sales, including a 75,400 share sale by the company CEO.
Even with the sizeable sales lately, insiders own about 7.5 percent of the company.
The packaged baked goods producer has seen shares rise 5 percent over the past year, and revenues are up 13 percent.
That’s moved shares to about 28 times their most recent earnings, but the company’s brands in the baked goods space can likely continue providing a premium.
Action to take: The company is a defensive play, so it may continue to outperform the market in the coming months. Investors can also get a 3.1 percent dividend yield at today’s prices, although the payout ratio is a bit high, so growth may be slow.
For traders, shares are likely to continue gradually moving higher. The July $30 calls, last going for about $1.55, offer mid-to-high double-digit gains in the coming months. Consider using any spike higher in shares to take a quick profit.
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.