Insider Trading Report: Molson Coors Beverage Company (TAP)

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  • James Winnefeld, a director at Molson Coors Beverage Company (TAP), recently picked up 1,000 shares. The buy increased his holdings at the firm by 18 percent, and came to a cost just under $37,000.

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  • This is the second insider buy at the company, following a 3,000 share buy from another director last month. Insiders have been sellers before then, with the last insider sale in March 2020.

    The most recent insider sales have all been at prices as much as 25-40 percent higher from where shares currently trade. Shares of the spirits company are down 30 percent in the past year as reduced sales to the restaurant industry has weighed on sales and profitability, and rising at-home drinking trends have been unable to offset the difference.

    Action to take: Shares have started to move gradually higher over the past few months, and this is a consumer beverage giant that is still far from its prior highs. That spells an upside opportunity for investors. Today’s buyers can acquire shares at nearly half their book value, and less than one time their price to sales, a nice historical valuation.

    Traders should consider the April 2021 $40 calls. Trading for around $2.95, they’re near-the-money and should offer investors that sweet spot of mid-to-high double-digit profits and the possibility of moving in-the-money before expiration.

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