Jonathan Locker, a director at Loews Corp (L), recently bought 15,870 shares. This is an initial stake for the director, and the total purchase price came to $1.01 million.
This is the first insider buy since May, when the company’s developer of corporate strategy bought 330,000 shares, paying $18.7 million. Otherwise, there have been a few insider sales over the past few months, largely from directors in small amounts.
Loews insiders own 18.6 percent of shares.
The conglomerate, which operates insurance, hotels, and gas pipelines, is up about 17 percent over the past year.
While not profitable in the most recent quarter, revenues are up 13 percent, fueled by strong energy prices and hotel demand.
Shares are still inexpensively valued at about 10 times earnings.
Plus, the company trades right at book value. That’s a fair price for the insurance business. But it indicates that shares may not fully reflect the company’s energy and hotel assets.
Action to take: Investors may like shares here. While the market isn’t usually a fan of conglomerate companies, Loews tends to trade closer to 15 times earnings on average. Shares pay a low 0.4 percent dividend.
For traders, the March 2024 $75 calls are the most-traded. Last going for about $0.40, they could see mid-double-digit gains on a move higher 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.