Lisa Caldwell, a director at Old Republic Insurance (ORI), recently bought 9,920 shares. The buy increased her stake by 1,262 percent, and came to a total purchase price just over $234,000.
This is the first insider activity at the company since March, when two directors also purchases shares. Generally, company insiders have been buyers of shares over the past three years, with some major holders acting as major sellers.
Overall, insiders at the company own about 7.5 percent of shares.
The insurance company has seen shares drop 10 percent in the past year. That’s a modest drop compared to the 39 percent drop in earnings and 6 percent decline in revenue.
Even with that short-term drop, the company has been a long-term success, and shares trade for around 5 times earnings.
Action to take: Investors may like shares, particularly for the long haul. The stock offers a starting yield of 3.9 percent, and the company has a history of steadily growing its dividend over time, even with a low payout ratio of about 20 percent.
For traders, shares have started moving up in recent sessions, and could make a run for the stock’s 52-week high near $27. The October $25 calls, last going for about $0.90, can likely return mid-to-high double-digit returns in the coming months before expiration.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.