Stefan Larsson, CEO at PVH Corp (PVH), recently bought 18,540 shares. The buy increased his holdings by nearly 16 percent and came to a total price of just over $1,000,000.
He was joined by two other company executives, including the CFO, who each bought 1,857 shares for a total purchase price of $100,000. The three buys mark the first insider buys of the year, following one small sale from a VP earlier in the year.
Over the past three years, insiders have overwhelmingly been sellers of shares, and insiders own just 0.5 percent of the company.
The apparel manufacturer has seen shares get cut in half, far exceeding the company’s 36 percent drop in earnings in the past year. That’s taken the stock down to just 4 times current earnings.
Action to take: Shares look like a value play right now. Apparel is always in demand, and the company’s brands give it pricing power over concerns such as inflation. The stock yields a low 0.3 percent dividend, but the company has grown it in the past year.
For traders, the January 2023 $60 calls, last going for about $6.30, could deliver double-digit returns on a rise in shares in the coming weeks. Given how shares have been flat over the past few weeks, traders will likely have a few weeks to build into the position, and can use short-term rallies in the stock to take short-term profits.
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.