Insider Trading Report: Beazer Homes (BZH)

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  • Christian Winkle, a director at Beazer Homes (BZH), recently bought 3,775 more shares. That increased his stake by over 13 percent, and came to a price just over $55,000. This follows two buys that he made in the prior two months.

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  • While this director has been buying, C-suite executives have been sellers of shares this year. And one director sold a massive stake back in March, when the share price was less than half of what shares go for today.

    While company insiders haven’t had the best track record, the latest buys, with shares in an uptrend, look like a better trend to bet on.

    With interest rates back at zero and with home prices soaring, the company is likely to continue to trend higher. Shares may even move back to all-time highs set in late 2017. Currently, the homebuilder looks attractive at less than 3 times forward earnings and with the price-to-sales and price-to-book readings well under 1.0.

    Action to take: If shares paid a dividend, the stock might be worth looking at here. Without that ability to get paid to wait, buying a call option is the optimal way to take advantage of the uptrend in shares.

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  • The February 2021 $15 calls are right at-the-money. Trading at $1.75, a continued uptrend in shares should allow traders to grab a mid-double-digit profit in the coming weeks.