Winder Investment, a major holder at Sensient Technologies (SXT), recently added to their stake with a 18,827 share buy. The purchase increased the fund’s holdings by 0.2 percent, and came to a total price of just over $870,000.
That’s on top of another 24 buys from company insiders over the past few years, including both C-suite executives and company directors. And in that same timeframe, company insiders haven’t sold any shares.
Overall, insiders at the company own just under 1 percent of shares.
The specialty chemical company, which manufactures colors and flavors, has seen shares rise about 5 percent in the past year, about one-third the performance of the S&P 500 index. Business has been steady, with flat revenue growth and earnings up just over 8 percent in the past year.
Action to take: Shares look relatively attractive at 20 times forward earnings. And the stock looks set to continue to move higher following the start of a new uptrend in recent weeks, with investors being able to lock in a growing dividend yield of just over 2 percent here.
For traders, the October $85 calls are a near-the-money trade with just over 6 months to play out. For a further uptrend in shares, today’s buyers could yield mid-to-high double-digit gains. The option last carried a bid/ask spread near $7.00, so traders might want to wait for a down day to get into the trade.
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.