Robert Eifler, President and CEO of Noble Corp (NE) recently bought 12,568 shares. The buy increased his position by 1%, and came to a total cost of $350,019.
He was joined by the company CFO, who bought 8,000 shares for just over $223,250, and who increased his position by 3%. A company director also bought 8,992 shares, increasing his stake by 31%. Going further back, insiders have been slight sellers of shares at higher prices.
Overall, Noble Corp insiders own 21.4% of shares.
The oil and gas drilling operator saw shares slide by 36% in the past year. Lackluster energy prices have kept the lid on oil production, as seen by Noble’s 35% drop in earnings growth.
However, improving back-end conditions and a lack of a significant selloff in oil allowed Noble to grow revenues by 44%, indicating that the company’s operations are about as mixed as the energy sector right now.
Action to take: Shares are near a 52-week low and look oversold in the short-term. They may see a rebound in the months ahead, but investors should be wary for a continued selloff if energy prices decline further.
At current prices, Noble Corp also pays a 7.4% dividend.
For traders, the June $30 calls, last trading for about $1.25, could see mid-double-digit returns on an oversold bounce in the coming weeks. Traders would likely want to take profits well before expiration.
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.