Kristin Coleman, General Council at
Albemarle Corp (ALB), recently added 1,373 shares. The buy is a new stake for the executive, and came to a total cost of $249,886.
She was joined by the company CEO, who bought 5,470 shares, increasing his stake by 12 percent, and paying just under $994,000 for the position. These two buys represent the first insider buys since February 2022. Otherwise, company insiders have been sellers of shares.
Overall, insiders at the lithium company own about 0.2 percent of shares.
The stock is down 16 percent over the past year, even amid triple-digit moves higher in both earnings and revenue. Revenue rose 129 percent, and earnings jumped a staggering 389 percent. Plus, the company still has a fat 49 percent profit margin.
Action to take: Shares look inexpensive at less than 7 times forward earnings. The lithium space isn’t the hot sector that it was in 2021 or even early 2022, and now there’s a reasonable value as Albemarle ramps up operations. Shares even yield 0.8 percent here.
For traders, shares have been trending higher off of 52-week lows in recent sessions. The September $230 calls, last going for about $9.90, offer mid-double-digit returns on a continued rally for shares.
Traders should look to take quick profits, as fears of a slowing economy may prevent shares from moving materially higher in the coming months.
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.