Johan Torgeby, a director at Nasdaq (NDAQ), recently bought 14,000 shares. The buy increased his position by 165 percent, and came to a total cost of $705,880.
This follows up on buy from another director for 500 shares in early August, for about $25,000. And the company’s CEO bought 10,000 shares for $510,000 in late July. Otherwise, insiders have been sellers of shares, almost entirely at prices higher than where the stock trades today.
Overall, Nasdaq insiders own 18.9 percent of shares.
The stock exchange and financial data company is down 20 percent over the past year, far underperforming the overall stock market.
Revenues are off by 7 percent, and Nasdaq failed to make a profit in its most recent quarter.
That’s likely due to a slowdown in trading following last year’s bull market. Even with that slowdown, shares are valued at 17 times earnings. And the company has a unique position that’s impossible for competitors to emulate.
Action to take: Investors may like shares at today’s beaten-down levels, with an eye towards a rebound in the markets. At current prices, shares yield about 1.8 percent.
For traders, the January 2024 $50 calls, last going for about $1.40, could see mid-to-high double-digit gains on a bounce higher in shares. Traders should look to take quick profits on any sizeable jump higher.
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.