Keith Harvey, President and CEO of Kaiser Aluminum (KALU), recently bought 2,588 shares. The buy increased his position by 3%, and came to a total cost of $199,871.
This marks the first insider buy over the past two years. Otherwise, company insiders have been occasional sellers of shares, with the company CFO selling shares on a regular basis in 2022 and 2023. There was only one sale this year, by a SVP, back in May, when Kaiser traded over 20% higher.
Overall, Kaiser insiders own 1.6% of shares.
The aluminum producer is down 6.5% over the past year, amid a lackluster commodity market. Operationally, Kaiser has fared worse, with earnings down 83% in the last 12 months, despite only a 5% drop in revenues.
Even with that drop, shares trade at 27 times forward earnings. Plus, aluminum should remain in strong demand, given current infrastructure spending and global economic growth.
Action to take: Shares dropped recently following earnings, and may have some short-term volatility. But the stock can likely regain its footing and start trending higher over the coming months.
At current prices, shares pay a 4% dividend, which may be able to increase if aluminum prices trend higher in the years ahead.
For traders, the September $80 calls, last trading for about $4.00, could see mid-double-digit returns if Kaiser stock gets back to an uptrend.
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.
