Prithvi Gandhi, CFO at Beacon Roofing Supply (BECN), recently added 5,000 shares. The buy came to a total cost of $411,000, and is an initial position for the CFO.
This is the first insider buy since last November, when a division president paid $125,603 to buy 1,725 shares. Otherwise, company insiders have been steady sellers of shares, evenly mixed between regular sales and sales following the exercise of stock options.
Overall, Beacon Roofing insiders own 0.6% of shares.
The distributor of roofing supplies is up less than 5% in the past year, significantly underperforming the overall stock market.
Beacon has had a mixed year, with earnings off by 17%, even as revenues rose by 7%. Roofing demand has been lower, as the housing market has stayed slow.
Shares recently sold off from their 52-week highs, and now trade at 11 times earnings.
Action to take: Beacon Roofing shares could be set to trend higher over time following this recent selloff. Shares are inexpensive, and the housing market is showing signs of opening up as interest rates are set to decline over the coming months.
Beacon shares also sometimes see some volatility during the summer months, depending on hurricane activity, which could make the stock a speculative buy now.
For traders, the January 2025 $90 calls, last trading for about $5.10, could trend higher on a rebound in shares over the coming months. Traders should look to take quick mid-to-high double-digit profits.
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.
