Andrea Owen, President and CEO at MillerKnoll (MLKN), recently picked up 60,606 shares. The buy increased her stake by 152 percent, and came to a total cost of just over $1.02 million.
This marks the first insider buy at the company since mid-2020, when a director picked up 50,000 shares in total. Otherwise, company insiders have been modest sellers of shares in the past three years.
Overall, company insiders own 0.6 percent of shares.
The furniture maker has seen its shares cut in half in the past year, amid fears of a slowing economy. However, MillerKnoll has grown revenue by 36 percent, and just reported a profitable quarter.
Shares currently trade for about 6 times forward earnings, down from 16 times a year ago.
Action to take: Shares are reasonably priced on a valuation basis, and the stock yields about 4 percent right now. However, the company does have a substantial amount of debt on the books, so it may be prone to a steeper selloff than the overall market. Investors should use market fears to buy shares at discount.
For traders, shares are likely to remain in a downtrend with the overall market. The February 2023 $17.50 puts, last going for about $2.15, can potentially deliver mid-double-digit gains from here. Traders should look to take profits and even go long if markets turn around.
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.