Charles Fargason, a director at
Carriage Services (CSV), recently bought 6,000 shares. The buy increased his stake by 70%, and came to a total cost of $153,480. That adds to another buy from the director a few weeks prior for 5,000 shares, which cost $130,500.
Insiders were mostly buyers of shares in 2022, including buys from the company’s COO and CFO. Otherwise, company insiders have generally been sellers of shares this year, largely following the exercise of stock options.
Overall, Carriage insiders own 12.3% of shares.
The funeral and cemetery services provider saw shares slide 13% over the past year. Operationally, the company has performed well. Earnings jumped 42% and revenues rose by 5%.
The combination of a declining share price and improving fundamentals now means Carriage shares trade at just 12 times earnings.
Action to take: Investors may like shares as a long-term holding. Demographic trends suggest that there will be a continued need for funeral and cemetery services for decades to come.
At current prices, shares also pay a 1.7% dividend.
For traders, Carriage has been trending higher since November. That trend looks likely to continue. The September $25 calls, last trading for about $3.65, are already about $1.25 in-the-money.
The calls could see mid-double-digit returns or better in the next six months before expiration.
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 company mentioned in this article.
