Robert Henkel, a director at Owens & Minor (OMI), recently added 1,000 shares. The buy increased his holdings by 3.7 percent, and came to a total cost of just under $16,000.
The director was also the most recent buyer of shares back in July, also picking up 1,000 shares at a price more than double where the stock trades today. Over the past two years, these have been the only insider buys, compared to a number of insider sales.
Overall, insiders own about 3 percent of the medical product and services company.
Shares of the company have had their price cut in half in the past year. Earnings are likewise down by about 56 percent, although revenue has held steady. Overall, the stock now goes for about 6 times forward earnings, down from 13 times last year.
Action to take: Shares are inexpensive here. They may get even more cheap in the coming months on a further market decline. But they’re also priced low enough that there’s likely solid upside ahead over the next year or more.
For traders, shares have been in a downtrend, so a short-term put option trade could work out well. The December $15 puts, last going for about $1.10, could deliver mid-double-digit upside in the coming weeks. Look for a big down day in shares to take a quick profit.
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.