Nicholas Hobbs, COO at JB Hunt Transportation Services (JBHT), recently bought 3,039 shares. The buy increased his position by 3%, and came to a total cost of $399,746.
This marks the second insider buy of the year, following a 59,447 buy from a company director for about $10 million back in February. Otherwise, company insiders have been sellers of shares, at least at a price more than $35 per share higher than where the stock trades today.
Overall, JB Hunt insiders own 19.6% of shares.
The trucking & transportation company is down 20% over the past year, with shares sliding in recent weeks on fears of a slowing economy and less demand for goods amid a rise in tariffs.
Operationally, revenues are flat over the past year, and earnings growth is down by 8%, suggesting that there’s already some weakness in the space before the recent tariff and trade news reports.
Action to take: The steep decline in shares in recent weeks is just slightly off of its recent lows. Investors could see a short-term bounce, particularly if headlines on tariffs and trade improve.
Speculative investors may like shares up to $150. At current prices, JBHT also pays a 1.4% dividend.
For traders, the August $145 calls, last trading for about $5.40, could see mid-double-digit returns on an oversold bounce in shares. Traders will want to take quick profits on the trade.
Disclosure: The author of this article has no position in the company mentioned here, but may further trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.