Insider Trading Report: Molson Coors Beverage (TAP)

Louis Vachon, a director at Molson Coors Beverage (TAP), recently picked up 3,000 shares. The buy increased his stake by over 10 percent, and came to a total purchase price of just over $138,000.

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  • This is the second insider buy of the year, following another director buy in February. Directors have also been buyers in 2020 as well, although many company executives have been sellers over the past three years, with sellers far outpacing buyers.

    Company insiders own 11.3 percent of shares.

    Shares of the beverage giant have performed about in-line with the S&P 500 over the past year. On a fundamental level, strong sales have led to shares trading at 10 times earnings. While earnings and revenue have been up over the past year, the company has reported a loss.

    Action to take: Beverage sales will likely remain strong, no matter what the economy is doing, and shares have pulled back in recent weeks. The company just started a dividend, although the yield is low at 0.73 percent.

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  • Traders may want to bet on a continued decline in shares in the coming weeks. The January $42.50 puts, going for about $1.65, could deliver mid-to-high double-digit profits. Traders may want to take profits quickly in the next few weeks, then look for a rebound in shares to the end of the year.

     

    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.