David Skidmore, a director at
Sunoco LP (SUN), recently bought 1,500 shares. The buy increased his stake by 11%, and came to a total cost of $78,144.
This is the first insider buy since mid-2022, when the company’s President and CEO bought 5,000 shares, paying $177,475 to do so. Insiders are generally not active in trading shares, as there has been one insider sale last December, from the company’s General Council.
Overall, Sunoco insiders own 34.4% of shares.
The oil and gas refiner and distributer is up about 21% over the past year, performing about in-line with the overall stock market.
The company’s operations have been slightly off in the past year, with revenues down by nearly 5%.
However, shares are still inexpensive at about 9 times forward earnings, indicating more upside ahead as energy prices continue to trend higher.
Action to take: Investors may like shares given the further upside potential in energy in the months ahead.
As an LP, Sunoco is structured for a high current income. At current prices, shares pay a 6.1% dividend. There likely won’t be much dividend growth, but a rising share price can still lead to overall good returns.
For traders, shares are in a long-term uptrend. The September $60 calls, last trading for about $1.25, could see mid-to-high double-digit gains on a further long-term increase in Sunoco’s share price.
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.