Robert Henkel, a director at Owens & Minor (OMI), recently picked up 1,000 additional shares. The buy increased his stake by over 4 percent, and came to a total purchase price of just over $33,000.
The director has previously been a buyer in September, and in May, also in increments of 1,000 shares. Over the past three years, sellers have exceeded buyers, particularly in the past year as shares rallied before coming down in recent weeks.
Insiders own 3 percent of shares overall.
Even with the recent pullback, shares are up about 30 percent in the past year, about in-line with the overall stock market. Revenue has grown nearly 30 percent, but earnings have been flat, with shares of the medical distribution company trading at 10 times forward earnings.
Action to take: The attractive valuation of shares could lead to a decent return going forward, however, investors may want to wait for shares to start an uptrend before buying in. Shares currently pay a penny annual dividend, so there’s no lost income in waiting for a better entry point.
For traders, shares have started a slight uptrend over the past few weeks that could continue, before shares face another steep selloff that they’ve seen over the past year. The March $40 calls, going for about $2.80, offer an inexpensive way to play an uptrend in the next few months, should it play out.
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.