Christopher Conoscenti, CEO at Sitio Royalties Corp (STR), recently bought 2,500 shares. The buy increased his stake by 1 percent, and came to a total cost of $50,475.
The buy came a few days after the CEO made a 10,000 share buy, which came to a cost just over $221,000. Those two buys have been the only insider filings since the oil and gas royalty company went public.
Overall, company insiders own 2.2 percent of shares.
The royalty company is down about 18 percent over the past year, as energy prices have slid from last year’s highs. However, Sitio has a 50 percent profit margin. That’s because the royalty business allows the company to benefit from the cash flows at resource sites without the costs of developing those sites.
Action to take: Investors looking for current income can grab a nearly 12 percent yield at current prices. And that dividend was recently raised. However, that payout will likely be variable over time, and declining energy prices now may mean a lower payout later.
For traders, Sitio shares are near a 52-week low, but have started to move higher in recent sessions. The July $25 calls, last going for about $0.75, offer mid-to-high double-digit returns if shares move back toward the higher end of their trading range.
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.