CD&R Investment Associates, a major holder of Beacon Roofing Supply (BECN), recently added another 105,320 shares. The buy increased the fund’s stake by 0.7 percent, and came to a total cost of just over $6 million.
Over the past three years, there’s been a mix of insider buys and sells. Insider sales are slightly higher overall, thanks to some large sales in early 2021. More recently, insider activity has been evenly mixed.
Corporate insiders own about 0.5 percent of shares, while institutions like CD&R own the rest of the free float.
The supplier of roofing supplies is up about 4 percent in the past year. That’s thanks in part to a 128 percent jump in earnings and a 26 percent increase in revenue growth.
Action to take: Shares are reasonably valued here at 10 times forward earnings, down from 21 times earnings last year. Investors may like shares here, with an eye towards taking advantage of the stock’s moves to sell shares in the low $60 range.
For traders, the January 2023 $60 calls, last going for about $2.50, offer investors a way to leverage the stock’s current uptrend higher in the coming weeks. Traders should look to take a quick profit, as the stock tends to trade in a range that starts to stall out around $60 per share.
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.