Jack Hightower, CEO and major holder of HighPeak Energy (HPK), recently bought 150,442 shares. The buy increased his position by less than 1 percent, and came to a total cost of $2.1 million.
This buy follows up on a 500,000 share buy the CEO made back in September. Another major holder also bought $67 million of shares at the same time. Over the past two years, insiders have been massive and regular buyers of shares, with only a few insider sales.
Overall, HighPeak insiders own 83.9 percent of shares.
The oil and gas exploration company has lost about one-third of its value over the past year, as energy prices have been volatile, but trending lower compared to 2022.
Earnings are down by two-thirds, even as HighPeak has increased revenues by nearly 70 percent.
Currently, shares trade at 8 times forward earnings.
Action to take: Shares hit their 52-week low in June and have been trending slowly higher ever since. That uptrend is likely in the year ahead, and could accelerate if oil prices substantially rise.
At current prices, HighPeak pays a 0.7 percent dividend.
For traders, the April 2024 $15 calls are an at-the-money trade. Last going for about $1.95, they could see mid-to-high double-digit returns depending on the strength of a continued rally for HighPeak 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 of the companies mentioned in this article.