Christopher Hamm, a director at Amplify Energy Corporation (AMPY), recently bought 17,000 shares. The buy increased his holdings by 29 percent, and came to a total cost of just over $130,000.
This marks the first insider activity since August 2021, when two directors bought 10,000 and 15,000 shares respectively, at a price just under half of where shares trade today. The last insider sales also occurred in 2021.
Overall, company insiders own 1 percent of shares.
The oil and gas exploration company has soared 153 percent in the past year, on the back of strong energy prices.
Amplify saw revenues rise by 30 percent, and while the company didn’t hit full profitability, its gross profit margins came in at 14 percent.
Action to take: Investors may like shares even after their big rally, as the energy sector continues to look like a bright spot in the overall market. As a smaller play, shares don’t pay a dividend, but the company can potentially grow faster an get bought out by a bigger player in time.
For traders, the July 2023 $10 calls, last going for about $1.20, offer mid-double-digit gains on a further rally in shares from here. Traders can likely buy the options more cheaply on a down day for energy prices, and make a quick turnaround on a small rally in energy.
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.