Barbara Adachi, a director at
Old Republic International (ORI), recently bought 2,300 shares. The buy represents an initial stake for the director, and the purchase price came to just over $59,000.
This is the second insider buy this month, following a buy from another director, although for just 118 shares. Company insiders have been regular buyers over the past few years, although a few large insider sales have overshadowed those buys.
Overall, insiders own 7.6 percent of the company.
Shares of the property and casualty insurer are up about 23 percent in the past year, beating out the S&P 500 by nearly 10 points. The move has also come as earnings have jumped 20 percent, and as profitability has hit over 16 percent.
Action to take: Shares trade at about 5 times earnings, and just a slight premium to book value, so the insurer likely has more room to run higher. Investors should consider shares as a long-term holding, especially as the stock is a dividend growth play offering a 3.4 percent yield right now.
Traders could make a decent return on the July $25 calls. Last going for about $2.20, the option is about $1.30 in-the-money. Traders can likely leverage a continued move higher into mid double-digit gains in the next few months.
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.