Insider Trading Report: Teledyne Technologies (TDY)

Robert Mehrabian, Executive Chairman of Teledyne Technologies (TDY), recently bought 10,000 shares. The purchase increased his holdings by 6.3 percent, and came to a total cost of $3.66 million.

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  • This marks the first insider buy at the company in over three years. Insiders have generally been sellers of shares on a regular and ongoing basis, as is typical of a technology company. The insider sales include both directors and C-suite executives.

    Overall, insides own just 1.5 percent of company shares. Shares have traded flat over the past year, as revenue has declined 3 percent, but earnings rose 14 percent. The company has little net debt, a plus at a time when many corporate balance sheets are leveraged to the hilt. The company manufactures instrumentation for aerospace and defense electronic needs.

    Action to take: Shares have generally been rising over time, so an insider sale here so close to all-time highs is eye-catching. Shares are fairly valued on an earnings basis, and defense companies tend to rise over time.

    Investors may like shares up to $375, although the stock doesn’t pay a dividend. To play the gradual uptrend, traders may like the September 2021 $380 call. Last trading for about $35.50, it’s a bit pricey, but it’s near-the-money and on a run higher in shares can deliver mid-to-high double-digit profits.

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