Mandy Yang, CFO of
Enphase Energy (ENPH), recently bought 4,000 shares. The buy increased her stake by 4%, and came to a total cost of $416,972.
This is the second insider buy of the year following a 4,000 share buy from the company CEO in February, which came to just over $482,000. So far this year, three insiders have sold, including a $4.8 million sale from a company director.
Overall, Enphase Energy insiders own 3.3% of shares.
The solar energy system designer and manufacturer is down by 33% over the past year. Lower demand for solar systems, particularly home systems, have led to a big drop in business.
Enphase is currently unprofitable, and revenues are down by a massive 64% in the past year.
However, a strong economy, and the big rebates available may make solar attractive in the coming quarters, especially if the prospect of the rebates disappear.
The costs to finance a solar system may also drop when interest rates start to trend lower later in the year.
Action to take: Shares have been somewhat rangebound in the past few months, and Enphase looks ready to trend to the higher end of its range. That could make for a short-term, low double-digit return for shares.
For traders, the August $125 calls, last trading for about $9.75, could see mid-double-digit gains or better on a bounce higher for shares.
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.