Insider Activity: Diebold Nixdorf (DBD)

Multiple insiders buy after earnings.

A number of insiders at Diebold Nixdorf (DBD) bought shares following earnings. The buys included multiple directors, a Senior Vice President of Services, and a 28,000 share buy from the President and CEO.

The CEO’s buy came to nearly $195,000, and most directors picked up around $50,000 in shares. The SVP bought nearly $7,000 in shares. Insider data shows a number of insider buys this year, with only one sale.

  • Special: The Only 8 Stocks You Need for 2020
  • Diebold Nixdorf provides commerce solutions for financial institutions and retailers, including products such as cash recyclers and dispensers, teller automation tools, and back-end platforms for financial monitoring and management.

    Shares have been on a tear, up 62 percent in the past year, but a look at the chart also shows some wild swings to the downside as well.

    Action to take: At current prices the company looks reasonably valued. Although currently unprofitable, shares trade at 8 times forward earnings, and at just 13 percent in terms of price to sales. The company’s products and services are in a sweet spot that likely faces little permanent obsolescence, and the banking sector is doing well right now. We like shares up to $8.50.

    Although it’s a bit of a moonshot, if the company shares keep heading higher, it could be a boon for holders of the May 2020 $10.00 calls. At a price of just $0.70, or $70 per contract, that value could surge to over $4.40 if the company gets back to its old 52-week high of $14.66.