Douglas Alexander, CEO at United Natural Foods Inc (UNFI), recently added 2,932 shares. The buy increased his holdings by 5.4 percent, and came to a total cost of $99,600.
This is the second buy form the CEO this year, after a 3,438 share buy back in March. Otherwise, company insiders have largely been sellers in the past three years, with the last insider buying window occurring back in early 2020.
Overall, company insiders own about 1.1 percent of shares.
The specialty food distributer is down about 28 percent in the past year. Revenue is up about 8 percent, but earnings are down about 9 percent, likely reflecting the higher costs of food production being pushed on to consumers.
Even with that slight drop in earnings, shares now trade at less than 7 times forward earnings, down from 18 times last year.
Action to take: The company looks attractive at current prices, especially with ongoing fears related to food production. Shares could see a rally in the coming quarters, especially if food prices continue to rise. At present, shares do not pay a dividend.
For traders, shares look to be rebounding after their latest drop. The February 2023 $45 calls, last going for about $1.60, offers mid-double-digit returns if this rebound continues in the coming months.
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.