Michael Kennedy, a director at Old Republic Insurance (ORI), has been a buyer of 2,950 shares. The buy increased his holdings by 40 percent, and came to a total cost just under $68,500.
Insiders have generally been buyers over the past year, with company directors picking up small sums of shares. One company executive sold 11,000 shares over the past year, receiving just over a quarter million dollars.
Overall, company insiders own 7.6 percent of shares.
The property and casualty insurance company is down about 3 percent over the past year, slightly outperforming the overall market. Revenues dropped nearly 15 percent over the same time. Shares still trade for a reasonable 9 times earnings, although that is up from 5 times earnings last year.
Action to take: The insurance business tends to be fairly steady and profitable for long-term buyers. Old Republic has used that consistency to pay a growing dividend payment over time. At present, that dividend comes to a 3.8 percent starting yield, which may be enticing for long-term investors.
For traders, shares have been in an uptrend since September, and are likely to continue trending higher. The July $25 calls are an at-the-money trade, going for about $1.20, and can potentially see mid-double-digit returns in the months ahead.
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.