Insider Activity Report: WD-40 Co (WDFC)

David Pendarvis, a director at WD-40 Co (WDFC) recently bought 328 shares. The buy increased his holdings by 7%, and came to a total cost of $77,000.

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  • This marks the first insider activity in two months, following a buy in February from a company VP who picked up 182 shares for $49,580. Going further back, there have been a mix of executive buys and sells, with the company’s CEO and CFO making multiple buys over the past two years.

    Overall, WD-40 insiders own 1.6% of shares.

    The specialty chemical company is up 26% over the past year, slightly beating out the overall stock market.

    WD-40 has had a mixed year, with revenues rising 7%, but overall earnings dropped 6%. That’s a sign that WD-40 can raise prices on its products, but higher costs are also weighing on shares.

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  • WD-40’s mixed returns have pushed the valuation to 47 times forward earnings.

    Action to take: Shares have pulled back to their long-term trendline following a spike higher in January, and could be a reasonable buy here. At current prices, WD-40 also pays a 1.5% dividend.

    For traders, WD-40 could resume its uptrend in the coming weeks. That makes a trade like the August $260 calls, last trading for about $10.20, capable of delivering mid-double-digit returns.


    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.

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