Amy Banse, a director at Lennar (LEN), recently bought 790 shares. The buy increased her stake by 12 percent, and came to a total cost of $99,872.
The buy comes a month after she picked up 165 shares, paying just over $20,000 to do so. Over the past two years, a few company officers have been sellers of shares, including a few officers at the VP level who sold over $1 million in a single transaction.
Overall, company insiders own 2.4 percent of shares.
The homebuilder is up over 90 percent from its October lows. Even with higher mortgage rates, a shortage of housing is keeping the firm profitable.
Lennar trades for about 11 times forward earnings, and the company has $4 billion in cash on the balance sheet. That’s enough to last through a slowdown in the housing market, which may see competitors go out of business.
Action to take: Shares likely have some upside potential from here, particularly if interest rates start coming down next year to make life easier for borrowers. At current prices, Lennar yields about 1.2 percent.
For traders, the current rally is likely to continue. The November $140 calls, last going for about $3.90, could see mid-double-digit returns in the coming months. Traders may want to cash out after Lennar next reports earnings in late September.
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.