Edward Ludwig, a director at CVS Health Corp (CVS) recently picked up 3,000 shares. The buy increased his stake by over 13 percent, and came to a total cost of exactly $216,000.
This is the first insider buy at the company since last May, when an EVP bought 5,000 shares. Overall insiders have been sellers of shares, and entirely from the C-suite of executives, rather than from company directors. Insiders own a paltry 0.17 percent of shares.
The drugstore chain has traded flat in the past year. Sales have been off, and Covid vaccines are being delivered through a number of different locations rather than by CVS pharmacies exclusively.
- These 2 Dividend Stocks Pay Every Week
After 31 years of trading the markets, I've just found the Holy Grail of dividend stocks.
Not one, but TWO dividend payers that deliver cash weekly to your account.
Cash you can enjoy life, or re-invest to rapidly grow you income payouts.
And, the best thig is, I've put all the details in a new Special Report you can download absolutely FREE.
These two stocks are a MUST in every income trader's portfolio.
However, shares are trending up, as are earnings in the most recent quarter. And trading at just 9 times forward earnings, the company is inexpensive.
Action to take: Investors who buy here can lock in a solid 2.75 percent dividend yield. However, that yield hasn’t had much growth lately. A better way to profit here is to play the current uptrend with a call option trade.
The August $80 calls would require shares to move more than 10 percent higher in the next six months, but trade at a decent price relative to that move, at just $3.00. Traders can likely nab high double-digit gains, possibly even a triple-digit move if the company has a great earnings report or other positive development in the next few months to move shares higher.