Karole Lloyd, a director at Aflac (AFL), recently added 1,000 shares. The buy increased her position by just under 3 percent, and came to a total purchase price of just under $60,000.
This marks the first insider buy at the company since last July. Since then, company insiders have been sellers. And insider selling has been more prevalent than insider buying over the past three years by a substantial margin, even as shares have soared higher.
Company insiders still own about 9.6 percent of shares.
The supplemental insurance company is up over 4 percent in the last year, edging out the S&P 500’s current slight gain. Earnings rose 9 percent, although revenue dropped slightly. Shares currently trade for about 11 times forward earnings as well.
Action to take: Insurance companies tend to have lower volatility and compound over time, which can be attractive for investors looking for a long-term entry point here.
While the insurance space is competitive, Aflac leads in supplemental health insurance policies. And the stock is a dividend growth play, with a recently-raised dividend yield of about 2.8 percent.
For traders, the August $60 calls, going for about $2.25, offer mid-to-high double-digit return potential in the coming months if the stock can continue its long-term uptrend.
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.