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Markets tend to react quickly to news. However, markets don’t just react. They tend to overreact. When there’s good news, the price of a company can get pushed far higher than it should. And when bad news hits, shares tend to sell off more than they should. Patient investors can use this to their advantage. They can buy when there’s bad news surrounding a company. And then take some profits when good news sends shares higher than they would otherwise go. Right ...
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Robert Deutschman, a director at Digital Turbine (APPS), recently bought 20,000 shares. The buy increased his holdings by 3 percent, and came to a total cost of $136,800. He was joined by another director who bought 5,000 shares, paying $34,250 to do so. Over the past two years, company directors have made over a dozen buys. The company’s CEO has been a slight seller of shares, with some of those sales coming from the exercise of stock options. Overall, company insiders ...
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Regional bank Axos Financial (AX) is flat over the past year, missing out on the market rally. One trader sees downside ahead for shares in the coming weeks. That’s based on the October $37.50 puts. With 28 days until expiration, 13,262 contracts traded compared to a prior open interest of 105, for a staggering 126-fold rise in volume on the trade. The buyer of the puts paid $1.75 to make the bearish bet. Shares recently traded for about $39.50, so the stock ...
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When an industry is growing, investors may tend to go for the company that can boast the largest growth, or is simply the biggest player. That provides the perceived safety of a well-known name that other investors know about, as well as the best liquidity for getting out of a trade. However, that leaves investors with opportunities to profit from companies that may not be as large or well known, but can still post a massive profit. In the defense industry, the ...
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Nancy Benacci, a director at Cincinnati Financial (CINF), recently added 1,000 shares. The buy increased her stake by 28 percent, and came to a total cost of $106,570. That marks the first insider activity since June, when another director bought 500 shares at a cost just over $48,500. Over the past two years, company directors have been the only active insiders, with two sales and 12 buys. Overall, company insiders own 1.6 percent of shares. The property and casualty insurance company is ...
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Household product manufacturer Newell Brands (NWL) has been a poor performer this year, with the stock losing over 42 percent of its value. One trader sees shares rebounding in the next six months. That’s based on the March 2024 $12 call options. With 177 days until expiration, 3,505 contracts traded compared to a prior open interest of 165, for a 21-fold rise in volume on the trade. The buyer of the calls paid $0.40 to make the bullish bet. Shares recently traded ...
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During an investment boom, some companies tend to soar relative to their peers. That’s because the market perceives them as having the best advantage. However, for a big enough trend, multiple companies can become winners. That means investors have a second shot at investing in a big trend by following companies that can still benefit from that trend. And investors may have better returns buying these companies over the industry leader after it’s already had a big rally. For instance, in the ...
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Eugene Lee, a director at Advance Auto Parts (AAP), recently added 8,670 shares. The buy increased his stake by 11 percent, and came to a total cost of $499,818. This marks the first insider buy since June, when another director bought 388 shares at a cost just under $25,000. There have been five other insider buys in the past two years, all from company directors. There have been no insider sales in that timeframe. Overall, company insiders own 1.1 percent of ...
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