John Rutherford, a director at Enterprise Product Partners (EPD), recently picked up 10,000 shares. The buy increased his holdings by nearly 15 percent, and came to a total purchase price of just over $237,000.
This is the first insider buy of 2022. Company insiders, including the company’s Co-CEO have been moderate buyers in the past year, with larger amounts of insider buying over the past three years. There’s also been no insider sales during the last three years.
Overall, company insiders own 32.5 percent of shares.
The partnership has risen about 13 percent in the past year, just slightly lagging the S&P 500. However, with a strong energy market and revenue growth surging 61 percent, there’s likely more upside for shares in the months ahead as energy prices continue to rally.
Action to take: Structured as an LP, investors should prefer shares here, as the company is structured to pay out most of its earnings as dividends. At present, shares yield 7.77 percent, and the LP recently raised the payout, a sign of today’s high energy prices.
For traders, the June $25 calls are a near-the-money trade last going for about $0.70. They can likely generate mid double-digit returns on a continued move higher in shares in the first half of the year.
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.