Insider Trading Report: Abercrombie & Fitch (ANF)

Kerri Anderson, a director at Abercrombie & Fitch (ANF), recently picked up 1,000 shares. The buy increased her stake by nearly 3 percent, and came to a total purchase price of just over $35,000.

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  • This is the second buy in recent weeks, following a 700 share buy from another director in August. Overall, company insiders have been more active on the sell side before these buys, which have occurred as shares have slid in recent weeks.

    Overall, company insiders own about 1.7 percent of shares.

    Shares of the retailer are about 25 percent off their 52-week highs, but are still up overall about 182 percent, or more than 5 times the S&P 500 in the same time. Revenue is up nearly 24 percent over the past year, and earnings are up nearly 1,900 percent.

    With those returns, it’s no surprise that shares look attractive here, going for about 12 times forward earnings.

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  • Action to take: The insider buying here may signal a buying opportunity for shares overall. The company doesn’t currently pay a dividend, but has in the past, and may resume it if earnings remain strong.

    For traders, the recent buy here as shares have dropped down suggests a potential rebound. A call option trade like the January $40 calls, last going for about $2.95, suggest further upside here.

     

    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.

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