Michael Weinbach, President at Mr. Cooper Group (COOP), recently bought 17,000 shares. The buy is a new position for the President, and it came to a total cost of $1,209,720.
This marks the first insider buy over the past two years. The company CEO has been a regular and steady seller of shares, with over a dozen sales amounting to 2-4 percent of his potion nearly monthly.
Overall, Mr. Cooper Group insiders own 3.6 percent of shares.
The mortgage financing company has seen shares soar 57 percent over the past year.
Even with that big rally, shares look inexpensive at 9 times forward earnings, thanks to a 33 percent surge in revenues.
The mortgage company should continue to fare well as mortgage rates have started to pull back in recent weeks. That could allow Mr. Cooper Group’s profit margin to rise even higher from the current 27 percent.
As a mortgage company, COOP does have significant leverage, but as it’s tied to mortgage debt, investors shouldn’t be too concerned.
Action to take: Investors may like shares here, as the stock is in an uptrend and industry headwinds are easing. Currently, Mr. Cooper Group does not pay a dividend.
For traders, the May $75 calls, last going for about $4.80, could see mid-to-high double-digit returns on a further uptrend in the months ahead.
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.