Insider Trading Report: Old Republic International (ORI)

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  • Steven Bateman, a director at Old Republic International (ORI), recently added 4,000 shares to his holdings. The buy increased his stake by nearly 10 percent and came to a total purchase price of just over $32,000.

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  • Insiders have been active buyers of shares throughout 2020, with no insider sales since 2019. Most of the buys have been from directors. This has pushed insider ownership up to just over 6 percent of the company.

    A diversified insurance company, Old Republic provides automobile warranties, home warranties, title insurance, and other related products.

    Shares are down 30 percent over the past year, on lower interest rates for the company’s investment portfolio, as well as fears of lower insurance profits. However, earnings have grown 21 percent over the past year, and revenues have risen by 7 percent. The company is also a dividend aristocrat, and raised its annual payout by a penny this year.

    Action to take: For long-term investors, this is a great stock to own with some upside potential and a current dividend near 5.1 percent.

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  • For traders, the insider buys are a sign that shares are undervalued. The April 2021 $17.50 calls are near-the-money, and with a bid/ask spread near $0.75, are an inexpensive way to bet on a move higher in the coming months. As long as the economy is seen as improving, shares are likely to rally. If that doesn’t happen, the call option may lose value, but not as much as shares.