Isabelle Parize, a director at Coty (COTY), recently bought 4,775 shares. The buy increased her stake by 8 percent, and came to a total cost of just over $50,100.
The buy was a follow-up from a buy the prior week for 20,500 shares, which increased her sake by 57 percent and came to nearly $211,000. A major holder also bought 3 million shares earlier in the month, paying $32.4 million.
All told, company insiders own 60.1 percent of the cosmetics company, and institutions make up another 35 percent.
Shares are up 60 percent over the past year, fueled by a 16 percent increase in revenues.
While not currently profitable, shares are valued at about 22 times forward earnings, down from 95 times earnings at the end of last year.
Company insiders likely see the company’s performance improving, as Coty just initiated a dividend with a yield in the low double-digit range right now.
Action to take: Investors may like shares here. Besides the big yield and potential for more capital gains, the high inside ownership could lead to a buyout offer or a deal to take the company private in the future.
For traders, the January 2024 $12 calls, last going for about $0.22, could see high double-digit returns or better on a further rally in shares in the coming months.
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 of the companies mentioned in this article.