James DeFranco, a director at Dish Network Corporation (DISH), recently bought 1,450,000 shares. The buy increased his holdings by 20 percent, and came to a total cost of over $15.7 million.
The director was the last buyer of shares, picking up 110,000 of them back in September for a mere $1.84 million. All told, the director has been the sole buyer of shares since last May with 8 buys overall. The last insider sale occurred in September 2021.
Overall, insiders own 14.1 percent of shares.
The pay TV services provider has lost two-thirds of its value over the past year, as concerns over customers “cutting the cord” continues. That drop seems extreme, given that earnings rose by nearly 70 percent, even as revenues dipped by only 9 percent in the same timeframe.
Action to take: Dish looks like a value play at 11 times forward earnings – and 4 times current earnings. But shares have continued to trend down in recent months, so investors may want to exercise patience and look to get shares closer to the 52-week low near $10.64.
For traders, the May $10 puts, last going for about $0.88, could deliver mid-double-digit returns on a further slide in Dish shares in the coming weeks. Look to take quick profits if the stock retests its old lows, as it may bounce there.
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.