Insider Trading Report: Lumber Liquidators (LL)

Joseph Nowicki, a director at Lumber Liquidators (LL), recently picked up 5,033 shares. The buy increased her stake by over 41 percent, and came to a total purchase price of just under $100,000.

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  • This follows up from a 2,500 share buy from the company CEO earlier in the month, at a total cost of $50,000. Overall, company insiders have been buyers going back to 2014.

    Company insiders own about 3.2 percent of shares.

    The home improvement retailer has seen shares declines nearly 11 percent over the past year, in spite of a 31 percent jump in revenue and 354 percent jump in earnings. With those strong earnings and poor stock price performance, shares look attractive relative to their price to sales and the company’s PE ratio.

    Action to take: Investors may like shares, given the strong trend of home improvement projects still underway. Shares are attractive on a valuation basis, but the company offers no dividend for income investors.

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  • Shares have been volatile over the past year, but appear to be coming off a selloff and are back on an uptrend. That bodes well for an options trade like the November $22 calls. On a 10 percent jump in shares, the trade could move in-the-money. Last going for about $1.60, traders could likely nab mid-to-high double-digit profits.

     

    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.