Insider Trading Report: Corning (GLW)

Roger Ferguson, a director at Corning (GLW), recently bought 1,420 shares. The buy increased his stake by nearly 26 percent, and came to a total purchase price of just under $60,000.

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  • This follows up on a buy from the same director last month. However, there have also been a number of insider sales since then, although the share price of the company has continued higher. Over the past three years, insiders have generally been sellers of shares.

    Overall, company insiders do own about 9.7 percent of shares, even with their high sale activity.

    Over the past year, shares have rallied about 50 percent, beating the S&P 500 index by about 15 points, even with a recent pullback.

    Valued at 20 times forward earnings, and with the company’s glass and other components a key part of today’s touchscreen technology, that growth trend is likely to continue.

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  • Action to take: Investors may like shares here, with a solid 2.3 percent dividend yield. The company has been raising its dividend slightly as well over the past few years.

    For traders, shares might start to bottom out from their recent decline and move higher, as they’re starting to look oversold on a relative strength basis.

    There may be a drop down to around $38, but the January $45 calls, last trading for about $1.60, are starting to look inexpensive and a great way to play a trend higher in the coming months.

     

    Disclosure: The author of this article has no position in the stock mentioned here, but may make a trade in this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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