Matthew Miau, a director at TD Synnex Corp (SNX), recently added 4,997,878 shares. The buy increased his stake by 105 percent, and came to a total cost of just under $439 million.
This marks the first insider buy at the company since the spring of 2020. Otherwise, company executives and directors have been sellers of shares over the past two and a half years. Insider selling has occurred on a regular and steady basis, as is common with tech companies.
Overall, insiders own 11.8 percent of TD Synnex.
The business process service company is down 17 percent in the past year, slightly worse than the S&P 500 index. However, business has been good, with a 195 percent rise in revenue and a 57 percent increase in earnings, a trend likely to slow in the coming year.
Action to take: Even with the prospect of a slowdown, shares trade at less than 7 times earnings, and the company’s essential business functions leave it well positioned for a slowing economy. Investors can start accumulating shares here today’s prices, where the stock also yields about 1.4 percent.
For traders, the short-term trend is still down. The December $80 puts, last going for about $1.75, offer traders mid-double-digit returns on any further market weakness in the coming weeks.
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.