Russell Wight, a director at Vornado Realty Trust (VNO), recently added 14,000 shares. The buy increased his holdings by 280 percent, and came to a total cost just under $150,000.
The buy came a week after a previous purchase. Another director was a sizeable seller of shares last month. Otherwise, company insiders have generally been inactive at the company over the past two years as either buyers or sellers.
Overall, insiders own 8.1 percent of the company.
The real estate investment trust (REIT) focuses on office properties. With the shift towards more remote work in the post-Covid era, the space has been hit hard. Vornado is down 61 percent over the past year.
Operationally, revenues have only dropped about 3 percent, but earnings have been cut in half. And the company has a -27 percent profit margin.
Action to take: While some markets are likely to recover in time, others are not. Shares continue to trend down.
And the company has already suspended its dividend, which has helped fuel a further decline. Interested investors can likely get shares at an even deeper discount, and should wait for signs of an uptrend before buying.
For traders, the October $12.50 puts, which last went for about $1.90, offer mid-double-digit returns on a continued slide in shares. Traders should look for signs of operational strength as a sign to take profits on the put position.
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.