Michael Dumais, a director at Baker Hughes Company (BKR), recently added 10,000 shares. The buy increased his holdings by nearly 67 percent, and came to a total price of just under $244,000.
This marks the first insider buy at the company since September 2020. Otherwise, company insiders have been regular and steady sellers of shares in the past two years, with a more even mix of buyers and sellers going back to 2019 and early 2020.
Overall, insiders at the company own about 4.6 percent of shares.
The oil and gas services firm is up about 18 percent in the past year thanks to a rise in energy prices. Revenue has been flat over the past year, and the company hasn’t been profitable even with rising energy prices.
Action to take: Insiders can get close to a 3 percent yield in shares right now. But buyer beware… shares can likely trend lower as energy prices have started to come down in recent months. Buyers should look to buy closer to the 52-week low around $19 per share.
For traders, there’s likely some short-term downside with declining energy prices. The January 2023 $20 puts, last going for about $1.40, can likely deliver mid-double-digit returns on a further decline in energy prices 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 of the companies mentioned in this article.