Aaron Alt, CFO and an EVP at Sysco Corp (SYY), recently picked up 1,000 shares. The buy increased his holdings by 7.5 percent, and came to a total cost of just over $80,000.
This is the first insider buy at the company since early 2020. Over the past three years, company insiders, including both executives and directors, have largely been sellers of shares. Those sales have also occurred on a regular basis.
Overall, company insiders own 0.1 percent of the company.
Shares of the restaurant supply company are up 12 percent over the past year. Earnings have surged 241 percent in the past year, and revenues are up 43 percent. That’s taken the company’s valuation from 77 times earnings last year to under 19 times forward earnings at present.
Action to take: Shares should continue to appreciate over time, given the company’s industry-leading position. The stock is also a dividend growth play, with a starting yield of 2.4 percent now. Combined with its industry-leading position and strong financial performance, the stock is in a buying range for long-term buyers now.
For traders, the stock is in both a short-term and long-term uptrend. The November $90 calls, last going for about $4.90, offer mid-to-high double-digit returns in the coming months. Traders should look to take quick profits on the upside.
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.