Steven Brass, President and CEO at WD 40 Co (WDFC), recently bought 558 shares. The buy increased his holdings by 3 percent, and came to a total purchase price just under $100,000.
He was joined by several other company insiders. The company CFO bought 168 shares, increasing her stake by 12 percent at a cost just over $30,000. And two company vice presidents also bought the stock on the same day.
Overall, insiders own 1.5 percent of the company.
The specialty chemical company has seen shares drop about 5 percent over the past year, about in-line with the overall stock market. Revenues were flat, and earnings dropped about 15 percent overall due to higher costs.
The company is best known for the product it’s named for, a specialty chemical solvent that leads in its market niche.
Action to take: Shares last went for about 40 times earnings. That’s considerably expensive for investors, especially compared to other chemical or cleaning supply companies, which tend to trade closer to 20 times earnings.
Even though WDFC has been a solid dividend growth stock, it’s best worth buying on a market pullback.
For traders, shares have been somewhat rangebound over the past year, and are trending toward the higher end of their range. The August $160 puts, last going for about $3.50, could deliver mid-double-digit gains or better if the trend flips in the coming weeks and shares start heading lower.
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.