Barbara Adachi, a director at Old Republic International (ORI), recently bought 2,300 shares. The buy represents an initial stake for the director, and the purchase price came to just over $59,000.
This is the second insider buy this month, following a buy from another director, although for just 118 shares. Company insiders have been regular buyers over the past few years, although a few large insider sales have overshadowed those buys.
Overall, insiders own 7.6 percent of the company.
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Shares of the property and casualty insurer are up about 23 percent in the past year, beating out the S&P 500 by nearly 10 points. The move has also come as earnings have jumped 20 percent, and as profitability has hit over 16 percent.
Action to take: Shares trade at about 5 times earnings, and just a slight premium to book value, so the insurer likely has more room to run higher. Investors should consider shares as a long-term holding, especially as the stock is a dividend growth play offering a 3.4 percent yield right now.
Traders could make a decent return on the July $25 calls. Last going for about $2.20, the option is about $1.30 in-the-money. Traders can likely leverage a continued move higher into mid double-digit gains in the next few months.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.