Craig Knocke, a director at HF Sinclair (DINO), recently bought 5,000 shares. The buy increased his stake by 20%, and came to a total cost of $180,746.
This buy came just a few days after the company CFO bought 9,000 shares, paying $340,624 for the stake. And last month, the company President and CEO bought 2,500 shares. Going further back, insiders were sellers in the $50-60 range, far above the current price under $40.
Overall, Sinclair insiders own 9% of shares.
The oil and gas refining and marketing company is down nearly 40% over the past year. That reflects lackluster energy prices, with oil still struggling to hold $70 per barrel.
The slide in shares has taken Sinclair to 12 times forward earnings, and shares trade at about 0.7 times their book value and 0.2 times its price-to-sales, suggesting shares may be undervalued here.
Action to take: Sinclair insiders have a good track record of selling shares at higher prices, and are now buying at lower prices. Value investors may like shares here, with an eye towards taking some profits when energy prices next surge higher.
Plus, at current prices, Sinclair pays a hefty 5.8% dividend.
For traders, the low price may lead to a bounce higher into next year. The June 2025 $40 calls, last trading for about $1.55, could see high double-digit returns on a trend higher in shares through the middle of next 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 company mentioned in this article.