Stocks are going on sale across the market, and the insiders are beginning to notice. The latest screen of stocks with interesting insider activity includes 4 bargains that offer value to investors and, in 3 cases at least, attractive capital returns as well.
Dividend King V.F. Corporation
Apparel manufacturer and DTC retailer V.F. Corporation (NYSE: VFC) has been trending lower in the wake of the pandemic peak and it may go lower, but that isn’t stopping the insiders from buying. Two directors, Mr. Carucci and Mr. Mcmullen have been making purchases for the last 3 consecutive quarters in an amount near $1.6 million. That’s a drop in the bucket for the company and only brings the insider ownership up to 0.9%, but it is a telling move. The stock is trading at only 13X its earnings which are under pressure but still ample enough to ensure the 4.8% dividend payment is not in jeopardy. The company is, in fact, a near-Dividend King with 48 consecutive dividend increases to its credit, and internal metrics back them up. The institutional ownership is high as well at 87%, but it has been mixed over the past few quarters due to rotation within the group, and that may cap upside potential for the near to short-term.
Kohl’s High Yield Looks Safe Enough
Off-price retailer Kohl’s (NYSE: KSS) also has 2 directors buying shares, and they have the inside ownership up to 0.6%, which is a paltry amount but backed up by a high 92% institutional ownership that has been on the rise over the past year. The institutional activity picked up in Q2 and Q3 when cracks started appearing in the retail sector, but the net of activity remains bullish and in support of the company, and the dividend is one reason. The company is paying a 6% dividend yield with shares trading at a two-year low, and it appears to be safe enough. The payout ratio is a cool 35% of expected earnings even after the latest guidance reduction, and the company is in talks to make a major real estate sale that will enhance the balance sheet safety.
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Door and window maker JELD-WEN Is Getting Bought
JELD-WEN (NYSE: JELD) is getting bought by two insiders as well, one director and 15% shareholder Turtle Creek Assets. The pair have had insider ownership on the rise for the last three quarters and own about 16.8% of the stock collectively. This is matched by a high 99% institutional ownership which also includes Turtle Creek, and insider activity is still supportive of the price action. JELD-WEN doesn’t pay a dividend, but it does buy back shares. The company repurchased 5.2 million shares in the first six months of the fiscal year, or 6% of the shares outstanding, and it upped the repurchase allotment. The company added another $200,000 to the repurchase authorization which is equal to another 21% of the market cap with shares trading near $10.
Stanley Black And Decker Is Another King Of Dividend Payers
Stanley Black And Decker (NYSE: SWK) is also trading at a 2-year low, is also being bought by two directors, and also pays a healthy capital return, this time a dividend worth 3.6% in yield and one that has been growing for 53 years. The two directors have been buying shares only recently, with price action down at its lowest levels, but the activity may pick up because the shares are still heading lower. The institutions are maintaining a high ownership percentage, but the balance of activity has been bearish the last two months and activity is very high due to rotation.
Companies in This Article:
| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|
| VF (VFC) | $20.97 | -3.1% | 1.72% | -12.12 | Hold | $18.19 |
| Kohl's (KSS) | $17.51 | -4.7% | 11.43% | 6.86 | Reduce | $21.29 |
| JELD-WEN (JELD) | $10.96 | +6.6% | N/A | -5.99 | Hold | $14.90 |
| Stanley Black & Decker (SWK) | $90.17 | -1.9% | 3.64% | -65.82 | Hold | $102.29 |
| VF (VFC) | $20.97 | -3.1% | 1.72% | -12.12 | Hold | $18.19 |
Experience
Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.
Areas of Expertise
Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies
Education
Associate of Arts in Culinary Technology
Past Experience
Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights.
