Paul Koonce, a director at Spire (SR), recently bought 500 shares. The buy increased his stake by 3%, and came to a total cost of $33,065.
This is the first insider activity in two months, since a company EVP bought 4,500 shares back in June, at a cost of $107,235. Other company directors have been buyers over the past two years, as well as the company Treasurer. There have been only a handful of insider sales, far less than the total insider buying.
Overall, Spire insiders own 2.7% of shares.
The gas utility is up 5% over the past year, far lagging the overall market. Revenues and earnings have been flat over the last 12 months. Profit margins are 9.4%, a reasonable level for a highly-regulated sector.
Even with flat earnings, Spire trades at 14 times forward earnings. And Spire shares offer investors a hefty 4.6% dividend at current prices.
Action to take: Shares have broken higher in the past few weeks, but have pulled back with the drop in the overall market. Investors may want to buy a small stake here, and add to it on any further drops for potential upside in the months ahead.
For traders, the December $65 calls, last trading for about $3.50, could see mid-to-high double-digit returns, depending on how quickly shares regain their footing and head higher in the months ahead.
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 company mentioned in this article.