Mark Lavigne, CEO at Energizer Holdings (ENR), recently added 3,000 shares. The buy increased his holdings by 2 percent, and came to a total price of just over $91,400. This is the second buy from the CEO in the past few weeks, following a 2,500 share buy.
Over the past three years, insides haven’t been too active overall, but insider buying has generally exceeded selling. And company directors have been more inclined to be sellers, with company executives adding to their holdings.
Overall, company insiders own 6.6 percent of shares.
The battery and lighting producer has seen shares drop 25 percent in the past year. Business has been steady, with revenue up 1 percent in the past year, but earnings have improved by 152 percent.
Action to take: Shares trade at 9 times earnings right now, a moderate discount to the overall stock market. And the stock yields just under 4.1 percent. Given the company’s strong brands it will likely continue to grow at a slow and steady pace in time. Buyers may want to look for cheaper prices in the coming weeks given overall market conditions.
For traders, the November $25 puts, last going for about $0.50, offer a better short-term return than going long. The option can likely deliver mid-double-digit gains in the coming weeks. If shares get oversold, traders can then take the long side and profit from a 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.