Sergio Pupkin, a senior vice president at Sealed Air Corp (SEE), recently picked up 1,000 shares. The buy increased his holdings by 2 percent, and came to a total cost of just over $44,000.
He was joined by a director making a first-time buy of 1,200 shares, paying out about $50,000 for the stake. This marks the first insider activity at the company since November 2020. Over the past three years, insider buys have beaten out total insider sales.
Overall, company insiders own about 0.6 percent of shares.
Shares of the food packaging and automation company have lost about 30 percent of their value in the past year. Revenue has been flat, but overall earnings have expanded by nearly 25 percent.
That’s created a value in shares, which now go for about 10 times forward earnings compared to 23 times last year.
Action to take: The company recently quadrupled its dividend, and shares yield 1.8 percent to start. With a low payout ratio of 21 percent, there’s room for further dividend growth in the years ahead. That makes shares look attractive now.
For traders, shares have started moving off their 52-week lows. If the trend can continue, a call option like the April 2023 $50 calls, last carrying a bid/ask spread of about $1.90, offer investors mid-to-high double-digit returns from here.
Disclosure: The author of this article has no position in the company mentioned here, but may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.