Insider Trading Report: Ralph Lauren Corp (RL)

Hubert Joly, a director at Ralph Lauren Corp (RL), recently bought 8,400 shares. The buy increased his stake by 47 percent, and came to a total price of just over $990,000.

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  • This marks the first insider buy since last October. Overall, insiders have been sellers of shares on a regular basis, with few insider buys on a regular basis. Company insiders own about 1.1 percent of the company.

    Insiders who have been selling are missing out. Shares are up 72 percent over the past year, more than double the return of the S&P 500. With revenues up 182 percent in the same timeframe, shares potentially have more room to run higher as the company comes back to profitability following losses during the pandemic lockdowns.

    Action to take: Shares look attractive here, as the company just recently boosted its dividend, and shares now yield about 2.4 percent. With the company trading at 18 times forward earnings, and with rapid earnings growth, there’s likely more room for shares and the dividend to run.

    The January $130 calls, which currently have a bid/ask spread right around $5.00, look like a way to play the uptrend in shares through the end of the year. They stand a good chance of moving in-the-money, but traders can likely grab mid-to-high double-digit profits well before the option expires.

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    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.

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