Insider Trading Report: The AZEK Co. (AZEK)

Vernon Nagel, a director at The AZEK Co. (AZEK), recently added 3,000 shares. The buy increased his holdings by 12.5 percent, and came to a total price of just over $55,500.

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  • The director was the last buyer of the stock, with a 5,000 share buy back in May for just over $94,000. Year to date, a number of company directors and executives have been buyers. Insiders were largely sellers in 2020 and into 2021.

    Overall, company insiders own 3.3 percent of shares.

    The building product designer and manufacturer has seen shares slide 56 percent in the past year, as fears of a slowing economy may lead to a pullback in construction spending. That’s also pushed the stock from 78 times earnings last year to 21 times earnings today.

    Revenue and earnings grew by over 20 percent last year. Even with a potential slowdown ahead, the company is well positioned for long-term construction trends to continue.

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  • Action to take: Shares could rebound strongly with the rest of the market, although that trend may take a few weeks or even months to play out. Investors should look to buy in the coming weeks on any further stock market weakness. At present, the company does not pay a dividend.

    For traders, the March 2023 $22.50 call, last going for about $1.85, can likely dip a bit lower in the coming weeks. But it’s well positioned for a late-year move higher in shares and the market, so keep an eye out to buy 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.

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