Jonas Prising, a director at Kohl’s Corp (KSS), recently bought 10,000 shares. The buy increased his holdings by nearly 20 percent, and came to a total cost just under $297,000.
A different director bought 25,000 shares in the last week, paying just over $750,000 to increase their stake by nearly 35 percent. Those mark the only insider transactions at the company since early 2020, when the same two company directors last bought shares.
Overall, insiders at the company own 1.3 percent of shares.
The retail department store chain has been volatile in the past year, as the company wea negotiating to be taken private. That deal has fallen through, and shares are down 52 percent compared to this time last year.
With revenue only down 8 percent in the past year, the company’s valuation has gone from nearly 20 times forward earnings last summer to under 7 times forward earnings today.
Action to take: The retailer looks somewhat oversold here, although it could continue to trade weakly amid an overall economic slowdown. Today’s investors can grab a dividend yield near 7 percent right now, with the potential for the stock to move higher as the economy improves.
For traders, the January $35 calls, last going for about $1.95, offer mid-to-high double-digit returns in the coming months if shares trend higher from here. Traders may want to look for a buyout offer or one-day jump in the stock to take a faster 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.