Harriet Edelman, a director at Bed Bath & Beyond Inc. (BBBY), recently bought 7,500 shares. The buy increased her holdings by 36 percent, and came to a total cost of just under $150,000.
This is the second buy from insiders this year following buys from two directors back in July. Those directors have already seen triple-digit returns thanks to the company’s strong performance in the past few months. The last insider sales were in early 2019.
Shares of the company have been a roller coaster over the past year, trading as low as $3 and as high as $26. The moves come as the retailer has worked to increase its online sales presence and management has worked to streamline the number of goods sold in stores.
- Insurance For Your Investments? The Answer...Options
Investors are reevaluating how to do things in 2021. With Options, a stock’s price can drop to zero, but you can never lose more than the option’s premium and you know the full amount at risk right from the get-go.
Options are the most dependable form of hedge, and this also makes them safer than stocks.
Action to take: There’s still a lot to like at today’s prices. Shares trade for 10 ties forward earnings, and the company trades at less than 0.3 times sales. There’s a large dividend for shareholders right now in addition to the massive move higher in shares.
Traders should consider the February 2021 $25 calls. Trading for $1.90, they have a good chance of moving in-the-money in the coming weeks as shares retest their 52-week highs set less than a month ago. From there, the options could deliver triple-digit returns for a relatively low price overall.