Lawrence Hilsheimer, CFO of Greif (GEF), recently bought 550 shares. The buy increased his stake by less than 1%, and came to a total cost of $37,384. He was joined by a company director, who bought 3,500 shares at a total cost of $245,700, establishing a new position.
This adds on to further company buys earlier in the year. However, going further back, company insiders were more likely to be sellers rather than buyers.
Overall, Greif insiders own 4.9% of shares.
The packaging products and services provider slid 9% over the past year, far underperforming the rallying stock market.
Operationally, the company had a mixed year. Revenues rose by 9% amid strong demand for packaging, but overall earnings growth dipped 4%. Shares trade at a reasonable 13 times earnings.
Greif shares have had some strong rallies and subsequent selloffs throughout the year. Shares traded at over $70 in the fall before their recent pullback to the low $60 range.
Action to take: With a still-growing economy, Greif can likely continue to trend higher over time from current prices. That makes the stock a strong rebound play in the months ahead.
Today’s investors can also get a 3.1% dividend yield while waiting for a share rebound.
For traders, a potential rebound over the next few months bodes well for the April $70 calls. Last trading for about $0.95, the option could see high-double-digit returns 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.
