Insider Trading Report: R.R. Donnelley & Sons (RRD)

Chatham Asset Management, a major holder of R.R. Donnelley & Sons (RRD), has bought another 185,000 shares recently. The buy increased the fund’s stake in the company by nearly 1.75 percent, and came to a total purchase price of just over $1.1 million.

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  • This adds to the fund’s purchases of shares from May and June. In total, over the past few months, the fund has bought over 2.4 million shares, and is the sole insider to make any changes.

    The fund was also the last seller of shares, back in early 2020. Overall, company insiders own about 4.4 percent of company shares.

    The integrated marketing and business services company has seen shares rise over 440 percent in the past year. Even with that rally, the company trades at about 4 times earnings, even as profit margins have been slim and revenue growth has been flat.

    Action to take: Shares have already had a strong rebound, and have pulled back in recent sessions. Investors may want to look into buying shares here. Given the low share price and company’s small market cap, using limit orders and holding off buys until big down days can allow investors to avoid overpaying here.

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  • Even with shares somewhat down in recent weeks, the longer-term trend is up. For traders, the December $6 calls are the at-the-money trade that goes the farthest out. Last going for about $1.15, the options offer some big potential moves should the rally continue in the months ahead.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may make a trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.