Thomas Chubb, a director at Flowers Foods (FLO), recently added 3,000 shares. The buy increased his stake by nearly 15 percent, and came to a total cost of $82,500.
The buy came a few days after the company President and CEO sold just over 143,000 shares. Insider trading history has been mixed over the past three years, with a few periods with large buys and sells by executives and directors
Overall, company insiders own 7.2 percent of shares.
The breadmaking company has seen shares rise nearly 18 percent in the past year, as food prices have held up well. Earnings are down slightly over the past year, but revenue has risen by 11 percent.
Action to take: Further price gains are likely in the future, albeit at a steady pace given the company’s line of business. Shares have been somewhat rangebound in the past year, so look to buy under $25. Investors can get a 3.2 percent starting dividend yield, and enjoy some slight increases over time.
For traders, the rangebound nature of shares suggests there may be some short-term downside potential in the weeks ahead. The January $25 puts, last going for about $0.65, offer mid-double-digit returns on a pullback shares. Traders should look to take profits on a drop in shares to $25.
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.