Marshall Lux, a director at New York Community Bank (NYCB), recently added 6,000 shares. The buy increased his holdings by 42 percent, and came to a total cost just under $52,000.
The director was also the most recent buyer with the purchase of 6,000 shares in September. Other company directors have been buyers over the past three years. There have been no insider sales at the bank going back over the last five years.
Overall, company insiders own about 1.1 percent of shares.
The regional bank has lost about 30 percent of its price over the past year, even with slight revenue and earnings growth of about 2 percent each.
However, shares trade right at book value a fairly conservative measure of the bank’s book of loans. And the bank sports a fantastic 45 percent profit margin, much larger than money-center and major banks.
Action to take: The bank looks reasonably valued at 8 times forward earnings. Plus, shares yield about 7.9 percent at current levels. That’s a level of income that could make for a worthwhile total return here.
For traders, shares will likely move higher in the coming year. The July 2023 $9 calls, last going for about $0.60, can leverage such a move higher into a high-double-digit return or better.
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.