Becker Seidman, a director at Home Depot (HD), recently bought 1,500 shares. The buy represents an initial stake for the director, and came to a total cost of just under $432,000.
This represents the first insider buy at the company since December 2020. Otherwise, insiders have been regular sellers of shares, although those sales have almost exclusively come from company executives.
Overall, insiders own just under 0.1 percent of shares.
Shares of the home improvement chain have dropped 9 percent in the past year, slightly underperforming the S&P 500. From its 52-week high of about $420, shares are down over one-third.
However, shares have dropped from 26 times earnings to 18 times forward earnings, and the company has slightly grown revenue and earnings over the past year. It’s also a company that’s performed well, as consumers maintain their homes in strong markets and bad.
Action to take: As a leading retailer that consistently performs, shares are worth buying during a bear market. The stock is also a dividend growth player, with a current yield of 2.6 percent.
For traders, the September $350 calls, going for about $2.75, offer a leveraged return on a rally in shares in the coming months. The option can likely leverage a move partial recovery in shares into a mid-to-high double-digit return for the 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.