Lisa Lesavoy, a director at Comtech Telecommunications Corp (CMTL), recently added 10,000 shares. The buy increased her stake by 118 percent, and came to a total price just over $102,000.
The buy comes a day after the company CFO bought 4,000 shares for just over $32,000, and the company President and CEO picked up 6,250 shares, for just under $60,000. Insiders were otherwise sellers of shares in 2019 and earlier.
Overall, insiders at the company own about 3.3 percent of shares.
Shares have been cut in half in the past year, as the communication equipment company hasn’t been profitable.
Revenues are also down about 12 percent as well. However, shares now trade at under 0.5 times their price to sales, and just over 0.5 times price to book, the company’s cheapest level in years. The company’s small market cap and technology make it a potential buyout candidate for a larger communications company at its current price.
Action to take: The company currently pays a dividend with a yield just under 4 percent. As long as the company can get back to profitability, the payout is likely to continue.
For traders, the January $10 calls, last going for about $1.10, are slightly in-the-money and carry a low premium. Traders can potentially earn a mid-to-high double-digit return on a rally in shares in the coming months.
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.