Insider Trading Report: Stanley Black & Decker (SWK)

Andrea Ayers, a director at Stanley Black & Decker (SWK), recently added 15,500 shares. The buy increased her holdings by nearly 700 percent, and came to a total price of $1.48 million.

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  • This represents the first insider buy at the company in the past three years. Over that time, a number of company executives have been regular sellers of shares. No company directors have been sellers of shares over the past three years.

    In total, company insiders own about 0.4 percent of shares.

    The power tool manufacturer and designer has had its stock price cut in half in the past year. Earnings are off by nearly 80 percent after a surge in demand for the company’s products during the pandemic. Revenue is still up 15 percent over the past year, even as the industrial cycle has shifted slightly.

    Action to take: The recently selloff has taken shares from nearly 21 times earnings to under 10 times forward earnings. Plus, shares now trade for less than 1x their price-to-sales ratio, which makes the company and its respected brands look attractive here. The stock also yields 3.4 percent at current prices.

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  • For traders, the stock can likely trend higher from here in the coming months. The January 2023 $110 calls, last going for about $4.00, could deliver mid-to-high double-digit returns.


    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.