Kevin Vann, CFO of Helmerich & Payne (HP), recently bought 3,300 shares. The buy came to a total cost of $99,627, and is a new position for the CFO. The buy is also the first insider purchase over the past two years.
Insiders have been periodic sellers of shares over the last 24 months, with the most recent sale coming from the company’s prior CFO. The company President and CEO was also a seller of shares in late 2022.
Overall, Helmerich & Payne insiders own 3.4% of shares.
The oil and gas drilling company is down 18% over the past year, amid a lackluster energy market. Operationally, HP has struggled, with revenues down by 4%, and earnings off by 7%.
On the plus side, shares trade at 9 times earnings, a significant discount to the overall market, and the stock trades right at book value. Plus, HP managed to make a 13% profit margin, on the higher end for commodity-related services.
Action to take: Shares are starting to perk up after hitting a new 52-week low in September, and look attractive as a speculative buy here. HP pays a 3.2% dividend at current prices.
For traders, the March 2025 $35 calls, last trading for about $2.50, could see high double-digit returns or better by their expiration, especially as energy prices tend to rally into the spring.
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.