Patrick Doyle, a director at Best Buy (BBY) recently picked up 20,000 shares. The buy increased his holdings by 63 percent, and came to a total purchase price of just under $2.1 million.
This marks the first insider buy at the big-box retailer in over three years. Company insiders have generally been big sellers of shares, particularly company executives thanks to stock compensation.
Even with the large amount of insider selling over the past few years, insiders do own just over 10 percent of the company.
The retailer had been running hot this year, but the company’s most recent guidance led to a selloff. Shares are now down about 25 percent from their 52-week high, and the stock is about flat over the past year.
Action to take: A rebound could be in the cards this holiday season. Investors are already cautious about supply chain issues, so any surprise could likely be to the upside for shares. Shares yield about 2.6 percent at current prices for income-oriented investors, although dividend growth has been flat in the past year.
For traders, the March $115 calls offer a good chance of moving in-the-money should shares rebound from here in the weeks ahead. The option last went for about $4.60, and offers mid-to-high double-digit returns.
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.