Insider Activity Report: Aflac (AFL)

Karole Lloyd, a director at Aflac (AFL), recently bought 1,000 shares. The buy increased her position by 2 percent, and came to a total cost of $77,280.

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  • Her buy came a day after another director bought 1,500 shares, also increasing his position by 2 percent. That buy came to a total cost of $114,000. These two buys are the first since last April. Otherwise, company executives and directors have been regular sellers of shares.

    In total, Aflac insiders own 9.8 percent of shares.

    The supplemental health insurance company is up 9 percent over the past year, returning about half as much as the S&P 500 over the same time. That’s not bad as revenues dropped 6 percent.

    On the positive side, earnings are up 44 percent. Plus, Aflac sports a profit margin of 24 percent.

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  • Action to take: Investors may like shares here, as Aflac is improving its profitability right now, even as total revenues have declined.

    Aflac is also a dividend payer with a long history of growth. At current prices, shares yield 2.6 percent.

    For traders, shares have been trending higher over the past year, but were recently knocked down after earnings. The uptrend may have already started.

    The May $80 calls, last trading for about $2.50, could see mid-to-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.

     

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