Robert Henkel, a director at Owens & Minor (OMI), recently added 1,000 shares to his holdings. The buy increased his stake by 5 percent, and came to a cost just over $27,000.
Over the past year, company directors have been buyers of shares, picking up over 100,000 shares by a number of directors. One company Vice President has been a seller of shares in the past year, at a lower price than where shares trade today.
Overall, insiders own about 3 percent of the company.
The medical supplier distribution company has been a top performer over the past year, with shares up over 300 percent. While revenues have been flat, earnings have had a strong rebound as well, and shares trade at a reasonable 10 times forward earnings.
Action to take: The overall insider buys and healthcare supply trends in place point to a continued rally in shares for the foreseeable future. Investors may like shares here, although with a $0.01 annual dividend payment, there’s no income advantage for buying shares.
For traders, the June 2021 $30 calls are a trade with the potential to move in-the-money. Last trading for about $4.00, it’s an inexpensive way to bet on a continued rally in shares in the first half of the year. Traders should look for mid-double-digit gains on the trade.