Gregory Shepard, a major holder at Atlas Energy Solutions (AESI), recently bought 2,200 shares. The buy increased his position by less than 1%, and came to a total cost of $43,736.
Shepard was the last buyer of shares with a 3,248 share pickup for just over $70,000 back in July, and further pickups in the mid-six-figure range earlier in the year. A few other major holders have been gradually selling off their position in recent months.
Overall, Atlas insiders own 42.7% of shares, and institutions own 54% of shares.
The oil and gas equipment provider has traded flat over the past year. That’s about in-line with energy prices, which have been rangebound and lackluster.
Operationally, Atlas has had a mixed year, with revenues up 77%, but earnings have declined by 61%. Oil and gas services are likely to keep slowing down as long as prices trade in a low range.
Action to take: Even with the lackluster performance in shares, Atlas trades at about 7 times forward earnings. Shares could see a sizeable jump higher if energy prices start to trend higher.
Atlas currently pays a 4.5% dividend.
For traders, shares have been rangebound for the past few months, and are now at the lower end of their range and are starting to look oversold.
The January 2025 $20 calls, last trading for about $1.55, are an at-the-money trade. They could see mid-to-high double-digit returns if Atlas trends to the higher end of its range over the next few months.
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.