Justin Jacobs, CEO of Natural Gas Services (NGS), recently bought 2,500 shares. The buy came to a cost of $47,700, and increased his holdings by 691%.
This marks the first insider buy at the company over the past two years. The last insider activity as NGS was a sale of just 3,000 shares from a director in December 2022, for a total cost of $33,150.
Overall, NGS insiders own 7.6% of shares.
The natural gas compression equipment services company is up over 90% in the past year. While energy prices have been trading in a range, NGS has been on a tear. Revenues have jumped nearly 40%, and earnings are up nearly 1,300%.
Even with the soaring share price, NGS looks attractively valued at about 12 times forward earnings. And shares trade right at book value, suggesting future upside potential from here.
Action to take: Even with the big run higher in shares this year, NGS has come well off its 52-week highs, and appears to be looking to trend higher once again.
Investors can likely see low-double-digit returns from shares in the coming months.
For traders, options are limited. The October $20 calls, last trading for about $3.40, could see high double-digit returns or better on a resumed rally from here in the months ahead.
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.