Amy Lane, a director at FedEx Corp (FDX), recently added 280 shares. The buy increased her holdings by 22 percent, and came to a total price of just over $49,000.
This marks the first insider buy at the company since September, when another director bought 1,500 shares, paying just over $215,000. Otherwise, company executives have largely been sellers of shares as options have been exercised, as directors continue to buy.
Overall, company insiders own 7.9 percent of shares.
The freight and logistics company has lost a third of its value in the past year. Revenues are own about 3 percent, but earnings have dropped by a quarter on fears of a slowing global economy. Nevertheless,
FedEx trades at about 13 times forward earnings, about in line with where shares have traded over the past year. As a major player in its industry, FedEx will move with the economy, but will likely gain market share as smaller players contract.
Action to take: Investors may like shares near today’s prices as a long-term buy. At current prices, the stock yields about 2.7 percent, above its historical average. Plus, the company has raised its dividend, but still has a low payout ratio for further increases.
For traders, shares have started to come off their recent lows. The June $200 calls plays to the continuation of this trend. Last going for about $9.65, the options can likely deliver mid-to-high double-digit returns in the months ahead.
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.