Howard Coker, President and CEO of Sonoco Products (SON), recently bought 20,000 shares. The buy increased his stake by 4%, and came to a total cost of $823,472.
He was joined by a company director, who paid $100,100 to pick up 2,246 shares a day later. Other company directors have been buyers over the past few months. Company insiders were more likely to be sellers of shares in 2024, at prices far higher than where Sonoco shares trade today.
Overall, Sonoco insiders own 0.9% of shares.
The packaging designer and producer is down 22% over the past year, amid fears of a slowing economy and its impact on the shipping of goods and services.
Sonoco’s operations have likewise struggled. While revenues rose by 4.4%, higher costs ate into earnings growth, which slid by 17%. And Sonoco currently earns a modest 2.7% profit margin.
Action to take: Contrarian investors may like shares here. If the current trade and tariff fears resolve, the perception of the economy will improve and Sonoco could be set up for further gains. Plus, at current prices, Sonoco pays a 4.7% dividend.
For traders, shares are near a 52-week low, but may have hit a double-bottom in recent weeks. Speculative traders may like the July $50 calls for $0.55. The trade could see high double-digit returns or better if the stock has bottomed and is ready to trade higher 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 company mentioned in this article.