Boring stock gets 5K block way out the money Feb call buy
Via OptionsHawk.com – Dun & Bradstreet (DNB) very unusual action as 5,000 February $130 OTM calls bought to open with the largest block at $0.71 but started at $0.55. DNB shares are working out of a nice rounded base this week and the $4.45B provider of data, analytics and insights trades 16.25X Earnings, 2.55X Sales, and 20.5X FCF with a 1.68% yield. DNB projections see very modest growth, the reason for the low multiple. DNB did have a buyer of 1,400 May $125 calls back on 1/3 as well for $520K. DNB was in talks back in 2012 to sell itself but decided not to and still considered a potential takeover target for PE firms. Blue Harbour, an activist, took a new stake in Q3 and Glenview added to its position. Piper reiterated a $142 target yesterday.