Lawrence Hilsheimer, CFO at Greif (GEF), recently added 4,050 shares. The buy increased his holdings by 2 percent, and came to a total cost of just under $320,000.
The CFO last bought shares a week ago, picking up 2,180 shares for just over $167,000. Looking further back, a major owner has been a sizeable seller of shares over the past year, and company executives have been overall slight buyers.
Overall, company insiders own 3.7 percent of shares.
The specialty packaging company has had a strong year, with shares rallying by 14 percent. That’s even as earnings and revenue slid by about 5 percent each. Yet thanks to a low valuation, shares still trade for about 10 times forward earnings, and just 0.5 times its price to sales.
Action to take: Investors may like shares here. Besides the relatively low valuation, the stock yields about 2.9 percent right now, and Greif has increased its dividend in the last year. With a payout ratio of 30 percent, there’s room for further increases down the line.
For traders, the July 2023 $80 calls, last going for about $4.40, offer mid-double-digit upside on a further move higher in shares. However, traders should be cautious, as there’s low open interest on the trade at the moment.
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.