Rodney McMullen, a director at VF Corporation (VFC), recently picked up 3,000 shares. The buy increased his holdings by over 21 percent, and came to a total price of $193,500.
This marks the first insider buy at the company since June 2020. Otherwise, company insiders, including both executives and directors, have been sellers of shares over the same timeframe. Over the past three years, company insiders have been more inclined to sell rather than buy shares, even with the stock near a three-year low.
Overall, company insiders own 0.23 percent of shares.
Shares of the apparel manufacturing company have shed 22 percent in the past year. However, revenue is up 22 percent and earnings are up 49 percent, and shares trade at 17 times forward earnings.
Action to take: While apparel manufacturing isn’t considered a high growth industry, the combination of solid growth, relative value, and the company’s clothing brands make for an attractive potential investment here. The company also yields about 3.2 percent for investors, with some room for future dividend growth.
For traders, the July $75 calls, last going for about $1.45, look attractive here. On a rebound in shares, the option could deliver mid-to-high double-digit growth in the coming months. With shares near a three-year low, there appears to be more upside than downside in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, and does not intend to trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.