Peter Feld, a director at NortonLifeLock (NLOK), recently picked up 2,500,000 shares. The buy increased his holdings by 15 percent, and came to a total price of $55.5 million.
This marks the first insider buy at the cyber safety solution company since the summer of 2019. Otherwise, company insiders, including both C-suite executives and directors, have been sellers of shares, irrespective of how shares have traded over the past three years.
Overall, company insiders own about 0.5 percent of the company.
The stock is down about 20 percent in the past year. Earnings have slid about 40 percent in the same timeframe, but revenue has risen slightly.
Action to take: Shares look inexpensive at about 12 times forward earnings. Plus, the company sports a solid 30 percent profit margin. Shares also yield about 2.3 percent at current prices, although dividend growth has been slightly flat in previous years.
Shares have generally been trading in a range for years, and are at the lower end of their range from the past few years.
The November $25 calls, last going for about $0.85, offer mid-double-digit return potential in the months ahead should shares rebound from here and head toward the higher end of their range. Traders should look for a quick rally in shares to take profits.
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.