Richard Anderson, a director at Medtronic PLC (MDT), recently picked up 5,010 shares. The buy increased his stake by 4.5 percent, and came to a total price just over $517,000.
This marks the first insider buy at the company since October 2020. Generally, insiders have been large and consistent sellers of shares, but have found some insider buying when shares have either recently dropped or look poised to move higher.
Overall, insiders own a scant 0.2 percent of shares.
Shares of the medical device company are down about 12 percent over the past year, even as earnings have jumped 168 percent and revenue has trended slightly higher. The company also has a healthy 15 percent profit margin, although apparently not healthy enough for traders right now.
Action to take: Besides its current growth metrics, shares trade at about 20 times forward earnings, certainly making it a bargain in the market right now. Investors can pick up share here, and get a starting dividend yield of 2.5 percent in a company with a history of growing the dividend.
For traders, shares have had a steel slide in the past few months, and look oversold on a technical basis. The May $110 calls, last going for about $3.10, offer significant upside on a rebound in shares, even if such a move higher is short-lived. Traders can likely nab high double-digit profits on an oversold 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.