Insider Trading Report: Activision Blizzard (ATVI)

Peter Nolan, a director at Activision Blizzard (ATVI), recently bought 20,000 more shares. The buy increased his holdings by nearly 12 percent, and came to a total purchase price of $1.9 million.

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  • This marks the first insider buy of 2021. Insiders tend to be sellers of shares, at the C-suite level, suggesting a large amount of stock options being exercised. However, insiders have been known to buy on dips, including large insider buys last year at the start of the pandemic.

    Overall, company insiders own about 0.8 percent of the company.

    Shares of the video game producer are up nearly 30 percent in the past year, underperforming the S&P 500 by about 15 points. That’s in spite of double-digit revenue growth, a solid 27 percent profit margin, and strong video game sales as new consoles have come onto the market.

    Action to take: With a cash-rich balance sheet and shares still a bit under their 52-week high, there’s room for a move higher. Investors may like shares, although the dividend yield of 0.5 percent is a bit on the low side and hasn’t been raised recently.

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  • For traders, a call option looks like the best way to play a move higher in shares in the coming months. The August $100 calls, going for about $3.90, offer high double-digit return potential in the weeks ahead.

     

    Disclosure: The author of this article has no positions in the stock mentioned here, but may make a trade on this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.