William C. Ford, Executive Chairman at Ford Motor Co. (F) recently bought 412,500 more shares. The buy increased his stake by nearly 3 percent, and came to a total purchase price of just over $8.5 million.
This marks the first insider buy at the company since February. Over the past year, a number of company executives and directors have been sellers of shares. Going back further, a large number of company insiders bought during the market crash in early 2020.
Overall, insiders at the company own just 0.3 percent of the stock.
The automaker has had a stellar year, with shares up over 120 percent, outperforming the S&P 500 by nearly 90 points.
That’s on the back of a shift towards more electric vehicle production, which the market has rewarded, overlooking lackluster fundamentals. Overall, the company has seen a slight dip in revenue and a 23 percent drop in earnings over the past year.
Action to take: The shift to electric vehicles is one the market likes, so chances are shares will continue to rally higher in time. Investors may still like share near 52-week highs, as the company just reinstated a dividend with a starting yield near 2 percent.
For traders, the March $24 calls look like an attractive way to bet on a further rally in shares, currently around $20. The option last went for about $0.95, and offers mid-to-high double-digit returns in the months ahead should shares continue their market-beating rally.
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.